Peru | Year-on-year inflation accelerated slightly in May

Summary

In May, Lima's Consumer Price Index rose 0.20% m/m, above market expectations (Bloomberg Consensus: +0.04%). With May's monthly result, year-on-year inflation accelerated slightly to 1.8%YoY, from 1.7%YoY the previous month.

Key points

• Key points:
• This was influenced by food inflation, which returned to above 2%YoY.
• In contrast, the component of inflation that excludes food and energy remained at 1.9%YoY in May
• Going forward, in a context of weak demand, a gradual transmission to local fuel prices of the decline that has had the international price of oil, and some appreciation of the PEN, we anticipate that inflation will close the year around the floor of the central bank's target range (1%YoY).

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