Peru’s inflation rate dips slightly in May but still above forecast

LIMA (Reuters) – Peru’s inflation rate based on the metropolitan region of the capital Lima fell to 0.32% in May, government data showed on Thursday, but the rate of creeping consumer prices still came in above the 0.25% estimated by a Reuters poll.

The slight uptick for inflation in May slowed from 0.56% in April, while inflation in the last src2 months reached 7.89%.

Peru’s central bank, as well as many economic analysts, use the metro Lima inflation rate as an accurate reference for prices nationwide.

Peru, a major global producer, posted an inflation rate of 8.46% in 2022, the highest annual figure in more than a quarter of a century, according to official data.

The slowdown in the rise in consumer prices has been driven by more moderate energy and transportation prices, the data showed.

Peru’s central bank expects annual inflation to return to its src%-3% target range by the end of the year.

Last month, the South American country’s central bank decided to keep its benchmark interest rate unchanged at 7.75% for the fourth consecutive month.