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April Inflation Falls Below 8% Y/y, But Above Surveyed Median Estimate

PERU
  • Recapping on yesterday’s data, Lima April consumer prices rose 0.56% M/m, against an estimate of +0.36%, according to the National Statistics and Information Institute (INEI). This took the annual figure down to +7.97% y/y compared to +8.4% in March, but above the estimate of +7.80%.
  • The slowdown in the April data was mainly due to abating supply shocks on food and energy prices, underscoring persistent upward pressure on core prices and upside risks from price indexation and high inflation expectations. Data will likely keep the BCRP in wait-and-see mode, with the board expected to keep the reference rate steady at 7.75% at its May 11 meeting.

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