On Monday, the National Institute of Statistics and Informatics (INEI) reported that Peru’s inflation rate reached 3.41% in 2023.
This rate reflects the changes in the Consumer Price Index (CPI) over the year. In December alone, the CPI rose by 0.30%. This increase contributed to the annual rate.
For Metropolitan Lima, the CPI in December was slightly higher at 0.41%. This resulted in a yearly increase of 3.24% for the area.
INEI’s statement highlights a steady decline in inflation since March. The report breaks down the December increases.
Transportation costs rose by 1.10%, mainly due to holiday travel demand. Food and non-alcoholic beverages increased by 0.38%. Tobacco prices went up by 0.36%.
However, some areas saw price drops. Vehicle fuel costs decreased. Gasohol fell by 3.2%, diesel by 1.9%, and liquefied petroleum gas for vehicles by 0.9%.
Yet, natural gas for vehicles rose by 1%. Food items also varied. Some, like meat and bread, saw price hikes.
Others, like lemons and apples, became cheaper. The report also notes lower prices in fish and dairy products.
Other sectors showed less growth than the national average. These include restaurants, hotels, clothing, furniture, and communications.
Health and education prices remained stable. Housing and utility costs slightly decreased.
Finally, the report indicates regional differences. In December, consumer prices rose in 18 cities.
Ica and Huancavelica saw the highest increases. Meanwhile, eight cities experienced price drops, showing the varied economic landscape across Peru.
Background
Peru’s rate, while significant, is moderate compared to some neighbors. This showcases the impact of diverse economic strategies across the region.
Internationally, Peru’s inflation is lower than in some developed economies. This difference often stems from varying monetary policies and market structures.
It’s vital to consider these factors when comparing nations. Peru’s economic stability is crucial for its geopolitical standing.
It influences trade partnerships and investment prospects.