Peru’s Annual Inflation Rate Slows as Food Costs Ease

Peru’s annual inflation rate slowed more than expected in November, returning to the central bank’s target range for the first time since June 2011, as food costs eased.

Inflation slowed to 2.66 percent from a 3.25 percent increase in October, the national statistics agency said in an e-mailed report today. The median estimate of seven analysts surveyed by Bloomberg was 2.8 percent. Prices fell 0.14 percent from the previous month.

Peru’s central bank has maintained its benchmark lending rate at 4.25 percent since May 2011 on the expectation that slower economic growth will bring down inflation. Policy makers target inflation at 2 percent, plus or minus 1 percentage point. The bank increased reserve requirements Oct. 30 for the third time in three months to cool credit demand.

The consumer price index is based on an agency survey of establishments in the Lima Metropolitan area.

To contact the reporter on this story: Christine Jenkins in Bogota at cjenkins28@bloomberg.net; John Quigley in Lima at jquigley8@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.