Peru’s Consumer Prices Jump More Than Expected to 12-Year High
(Bloomberg) -- Peru’s inflation surged by the most since 2009 as easing pandemic restrictions and infection rates stoked a domestic demand rebound, putting pressure on the central bank to keep boosting borrowing costs.
The benchmark Lima’s consumer price index rose 5.23% in September from the same month a year earlier, the national statistics agency reported Friday, faster than the 4.83% median estimate of analysts surveyed by Bloomberg. On the month, prices rose 0.4%, down from 0.98% in August, but still higher than the 0.16% estimate.
The surge in consumer prices likely increases pressure on the central bank, which targets an inflation rate of 1% to 3%, to accelerate its tightening cycle at next week’s meeting after last month’s half-point hike put the key rate at 1%.
All five of Latin America’s inflation-targeting central banks are raising their borrowing costs to counter above-target inflation, pressured by rising food and fuel costs. In Peru’s September print, food and beverages, which have the greatest weight on the index, jumped 0.82% from August.
©2021 Bloomberg L.P.