Apr 1, 2023
Peru Inflation Surprises as Social Unrest Continues to Ease
(Bloomberg) -- Inflation in Peru’s capital came in above expectations in March, slowing less than expected, as protests that disrupted key supply chains in the mining, tourism and agribusiness industries eased.
Consumer prices in Lima in March rose 8.4% from a year earlier compared to the 8% median forecast of five economists surveyed by Bloomberg. On a monthly basis, inflation rose by 1.25%, according to statistics agency INEI, faster than expected by any of the six economists surveyed by Bloomberg. The median forecast was for a price rise of 0.9%.
Peru’s central bank is combating stubbornly high inflation that has been made worse by anti-government protests. The unrest peaked in January and has been easing since, with protests now isolated in the Andean region of Puno near Bolivia.
Peru’s central bank has held the interest rate at 7.75% for two consecutive months, after its steepest series of hikes ever. The bank will reassess its benchmark rate at its monthly meeting in April.
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