on Tuesday explained that the poverty increase registered in Peru in 2022 was due to the strong rise in inflation and economic slowdown.
Why did poverty increase in 2022?
"Basically, due to higher inflation and also because the growth pace has slowed down," Contreras indicated.
The estimated number of Peru's poor population stood at 9,184,000 people in 2022, a 628,000 increase over the previous year.
Within this framework, the minister stressed that inflation began to subside as of April, which would impact poverty in 2023.
"There was concern that inflation might not decrease in the first quarter. However, in April we see a marked moderation in inflation, and we expect this trend to continue in May," he expressed.
The economist stressed that the international pressures registered in 2022, such as the increase in the cost of international transportation, plus in the prices of energy and fertilizers, are subsiding and have practically been corrected.
"This correction should be reflected in our country during the following months. To this, the Central (Reserve) Bank's monetary policy will be added, which is helping to reduce inflation expectations," he noted.
"Before inflation, expectations are the first to decline, and that is what we are seeing. Inflation expectations are already around 4%. Thus, we expect this inflation reduction process to consolidate in the following months," he emphasized.