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Peru Inflation Falls in October as Lima CPI Drops 0.10%

Cheaper fish alongside a residential power tariff cut drove the move.

Overview

  • INEI reported Lima’s consumer prices fell 0.10% in October, led by declines in fish and seafood, a residential electricity tariff reduction, and lower communications costs.
  • Year to date inflation in Lima stands at 1.15% with a 1.35% annual rate, while national prices fell 0.07% in October for a 1.29% annual reading.
  • Price increases were concentrated in transport and in restaurants and hotels, as wholesale prices, the machinery and equipment index, and construction materials all declined.
  • September activity data showed sector gains: fishing rose 6.37% year over year on stronger maritime catches, mining and hydrocarbons grew 1.86%, electricity generation increased 2.09%, and domestic cement consumption jumped 11.12%.
  • Credit expanded for consumers and mortgages and total imports climbed 8.47% in September, indicating ongoing pockets of domestic demand.