Peru’s Inflation Slows Less Than Expected In December

(Bloomberg) -- Peru’s inflation slowed less than expected in December but now stands within short distance of the central bank’s target range. 

Consumer prices in the capital, Lima, rose 3.24% from the previous year, compared with a median estimate of 3.20% in a Bloomberg survey of economists. Prices rose 0.41% from November, the national statistics bureau reported on Monday. 

Peru’s inflation has exceeded the central bank target of 1% to 3% since June 2021. The rate peaked at more than 8% by mid-2022, and only started a period of sustained decline earlier this year, following an aggressive monetary tightening campaign that boosted borrowing costs to 7.75%.

Since then, the central bank led by Julio Velarde has cut rates four times, to the current level of 6.75%.

Velarde has said inflation is now under control, allowing government officials to focus on reviving an economy stuck in its deepest recession in over two decades. 

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