Peru's Central Reserve Bank (BCR) Governor Julio Velarde on Friday projected the cost of living for the end of 2017 at 1.4%, a downward revision from the September 2.3% projection.
Speaking during the presentation of BCR's December 2017 Inflation Report, the BCR head explained such adjustment is the result of a reversal in supply shocks.
"In addition, interannual inflation is expected to stay temporarily below 2% during the first half of 2018," he added.
Peru's inflation rate will thus remain among the lowest in the region in 2018, second only to Ecuador's (0.7%).
The forecast is in line with that of BCR General Manager Renzo Rossini, who last month anticipated inflation would remain in the downward trend.
Rossini also projected November's inflation rate —in annual terms— at 1.6%, which places the indicator within the 1%-3% target range at the end of the year.
Earlier this month, the National Institute of Statistics and Informatics (INEI) reported a 0.2% drop in Metropolitan Lima's Consumer Price Index in November.
Lastly, Velarde projected inflation will remain at 2% at the end of 2018.
(END) MMG/MVB