Peru Prices Slow Much More Than Forecast Back Into Target Range.

PRICES; ECONOMIC recovery; INTEREST rates

Inflation in Lima, Peru slowed more than expected in April, with consumer prices rising 2.42% compared to the same month last year. This was lower than the median estimate of economists surveyed. Prices also fell 0.05% on a monthly basis, contrary to the expected 0.25% rise. Peru's central bank, led by President Julio Velarde, has been confidently lowering its benchmark interest rate and aims to maintain an inflation target band of 1% to 3%. Despite higher-than-expected inflation in March, the bank cut interest rates in April and forecasts a further easing of annual consumer price increase to 2% in the coming months. Peru's economy is recovering from a recession in 2023 caused by bad weather and political unrest, and President Dina Boluarte is working to stimulate economic growth. The central bank expects economic growth in 2024 to reach 3%. [Extracted from the article]

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