Consumer prices in Metropolitan Lima fell 0.27% from the previous month in June, contrasting May's 0.20% rise and marking the first monthly fall in prices in 12 months, the latest FocusEconomics' LatinFocus Consensus Forecast report has highlighted.
June's decline was principally driven by falling food and drink costs, while transport costs continued to fall on lower fuel prices.
"Inflation fell to 1.6% in June from 1.8% in May, thus remaining below the midpoint of the Central Bank's 1.0–3.0% target band for the 10th month running," it said.
Meanwhile, the trend levelled off this month, with annual average inflation coming in at 1.9% in June, unchanged from the prior month.
"Core inflation, however, rose to 1.9% from May's 1.7%," it recalled.
Panelists participating in the LatinFocus Consensus Forecast project inflation to end 2020 at 1.0%, which is down 0.2 percentage points from last month's projection.
For 2021, the panel expects inflation to end the year at 1.9%.