Peru: Inflation remains at historic level

Peru recorded an inflation rate of 0.94% in July. It decreased from the previous month, but still the highest level in a quarter of a century, as the cost of food and fuel rose again.

According to the National Institute of Statistics and Informatics (INEI), inflation, measured by the Consumer Price Index of Greater Lima, was 1.01% last July.

The institute said cumulative inflation between January and July was 5.42%, while the annualized rate rose to 8.74%, the highest level since July 1997, when the country struggled with an inflationary process.

In July, costs in the food and beverage sector, the sector with the greatest weight in measuring inflation, increased by 1.56%, while transportation costs rose by 2.49% in the month.

Fertilizer shortages caused by the conflict in Ukraine have led to food supply fears as the Peruvian government struggles to secure supplies, while high global fuel prices have exacerbated social conflicts in the South American country.

The Peruvian central bank has raised its interest rate to curb the rise in consumer prices. In July, the bank raised the rate for the twelfth consecutive month by fifty basis points to 6%, the highest level in thirteen years.

Peru, the world’s second-largest copper producer, recorded an inflation rate of 6.43% in 2021, the highest in thirteen years.

With information from Latina Press