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Peru: Inflation expectations dip, stay within target range

PARACAS,PERÚ-NOVIEMBRE 30. El Presidente del Consejo de Ministros Fernando Zavala presenta acciones del gobierno en CADE 2016.Foto: ANDINA/Oscar Farje Gomero

PARACAS,PERÚ-NOVIEMBRE 30. El Presidente del Consejo de Ministros Fernando Zavala presenta acciones del gobierno en CADE 2016.Foto: ANDINA/Oscar Farje Gomero

14:39 | Lima, Jul. 10.

Economic agents' year-ahead inflation expectations inched down from 2.92% in May to 2.89% in June 2017, thus remaining within the 1%-3% target range, Peru's Central Reserve Bank (BCR) reported on Monday.

According to BCR, said result constitutes consumer prices expectations' lowest level in the last eight months. 

Inflation expectations in Peru keep easing away from the 3% upper threshold as the economy continues to fight off negative supply shocks that took a toll on inflation in the first quarter of the year. 

As is known, prices of certain food products —temporarily— hiked earlier this year in Lima due to Coastal El Niño floods and landslides, which affected food supply channels to the nation's capital.

This rise peaked in March but has been gradually returning to target-range levels since April. 

In this sense, BCR's latest Survey on Macroeconomic Expectations placed economic analysts, financial system and non-financial institutions' inflation expectations at 3% (2017) and at 2.8%-3% for 2018. 

(END) MMG/DHT/MVB

Published: 7/10/2017