Peru Keeps Inflation Low in 2025, but Food and Service Costs Edge Up

Peru’s official statistics agency, INEI, reports that prices in Peru went up by 1.13% during the first half of 2025. In June alone, prices rose by 0.08% across the country and by 0.13% in Lima, the capital.

Over the last year, inflation reached 1.73% nationwide and 1.69% in Lima. These numbers are well within the Central Bank of Peru’s target range of 1% to 3%. Food and non-alcoholic drinks cost 1.49% more than a year ago, while restaurant and hotel prices also climbed.

Alcohol and tobacco prices increased by 0.39% in June. Some prices, however, went down. Eggs became 5.4% cheaper, and both white and brown sugar dropped by 4.7% and 3.7%. Housing and utility costs fell by 0.15%, and meat, vegetables, and tubers also saw slight declines.

Sixteen cities in Peru reported higher prices in June, with the biggest jumps in Chachapoyas and Pucallpa. Still, Peru’s overall inflation is lower than its average over the past decade and much lower than the spikes seen in 2022 and the 1990s.

These stable prices matter. When inflation is low, people’s money keeps its value, and businesses can plan ahead with more certainty. Investors see Peru as a safer place to put their money because costs are not rising quickly.

The Central Bank’s careful management has helped Peru avoid the high inflation that some other countries have faced. However, rising food and service prices show that some families and businesses still feel financial pressure.

This is especially true when their incomes do not keep up with the cost increases. Companies in these sectors may need to adjust their prices or find ways to cut costs if these trends continue.

In short, Peru’s inflation story in 2025 is about stability with a few warning signs. The country’s steady prices help everyone from families to business owners, but the increases in food and services remind us that not all sectors are the same.

These official figures from INEI and the Central Bank of Peru give a clear picture of where Peru’s economy stands now.