The Peruvian Sol (S/) has been one of the few currencies of emerging countries that has remained relatively stable in the world's high inflation rates cycle,
"The (Peruvian) Sol has been one of the very few currencies in emerging countries that has maintained a relatively stable value against the U.S. Dollar during the cycle of high inflation rates. That can be said about very few emerging economies," he underlined.
The chief economist said it is due to the fact that Peru, despite all the problems it faces, maintains a fairly strong and resilient macroeconomy —both in the fiscal and regulatory sides, plus in terms of monetary policy.
"This also allows inflation in Peru to be one of the lowest in the region," he asserted.
"A reduction in inflation expectations is expected for the rest of the year (…) there is price stability. In any case, we don't observe upward pressures that we observed once the cycle of high inflation rates had originated," he said during an audio conference held by the BCR.
The official specified that around the world there is a downward trend in fuel prices, as well as in some food commodities.
In this sense, Armas indicated that a scenario of normalization of conditions for agricultural production is expected for the current year —which includes greater access to inputs and fertilizers.
"A reversal of the supply shocks in the agricultural sector is expected because new sowing will be carried out at lower costs," he underlined.
The
chief economist indicated that the
Central Bank's projection means a downward trend in year-on-year inflation from next March —with a return to the target range in the fourth quarter of 2023.
"This projection is based on the moderation of the spectrum of international food and energy prices," he pointed out.