Peru | Negative monthly inflation in June

Lima's Consumer Price Index fell 0.27% m/m in June, a downside surprise for the market (Bloomberg Consensus: -0.10% m/m). With June's monthly result, year-on-year inflation slowed down to 1.6%, from 1.8% the previous month.

Key points

• Key points:
• The result was led by lower food inflation, thanks to the normalization of distribution channels.
• Inflation excluding the food and energy component, a core measure, remained at 1.9% in June.
• Looking ahead, we expect inflation to close the year around 0.6%, below the lower bound of the central bank’s target range (2% +/- one percent), mainly due to weak demand.

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