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Peru: Inflation expectations within target range

18:11 | Lima, Jun. 7.

Based on the Survey of Macroeconomic Expectations conducted last May, inflation in Peru is expected to remain within the 1%-3% target range in this and the following two years, the Central Reserve Bank (BCR) has reported.

Inflation is expected to range between 2.2% and 2.5% in 2021 and 2022, and between 2.0% and 2.5% in 2023; besides, it is expected to remain within the target range in all cases.

“In May, economic analysts and financial entities in the financial system expected one-year ahead inflation to be around 2.4%. This indicator has been within the target range consecutively since May 2017,” the issuing entity indicated.

Moreover, it said, inflation expectations have remained within the target range 86% of the time in the past 20 years.

In April, economic agents expected one-year ahead GDP growth to be between 4.5% and 8.5%, while in the next two years, it is expected to be between 3.5% and 4.6%.

Moreover, the survey shows that the exchange rate is expected to be between S/ 3.50 and S/ 3.70 per dollar in 2021, and between S/ 3.45 and S/ 3.75 per dollar in the next two years.

On the other hand, the BCR noted that most of the business expectations indicators registered a recovery in May 2021. 

It should be noted that 12 indicators out of 19 were in optimistic territory, compared to 10 indicators in the previous month.

(END) NDP/RMB/MVB

Published: 6/7/2021
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