underscored that Peru would be the first country in the region to manage to reduce total inflation —particularly inflation without food and energy (core inflation).
"Fortunately, we have managed to reduce inflation without raising the rate so much. The accumulated inflation as of November stands at 2.8%; without food and energy, it is 2.53%," he stated on December 22.
Velarde indicated that the inflation projection managed by the BCR for the end of 2023 is close to 3.1%.
Core inflation
Afterwards, the BCR governor highlighted that inflation without energy and food is quite low in Peru.
"We expect inflation without food and energy to end at 2.9%; it could even be lower," he noted.
Furthermore, the expert pointed out that the issuing entity expects annualized inflation to end at 2.3% in 2024.
"Obviously, there are risks. We are expecting a moderate El Niño (phenomenon), but there are always risks that it could be strong. That would affect prices," Velarde warned.
"Secondly, the geopolitical situation around the world is quite uncertain. That could affect the price of oil," he indicated.
Moreover, Velarde said he expects the inflation rate to converge at 2% by 2025.
"Inflation has clearly gone down, but we cannot claim victory yet. Only if it remains within the (target) range in June or July, we can say that there is already moderation in inflation. We are on our way to achieving it," he pointed out.