MNI BRIEF: EU Will Prioritise Local Firms In Rearming - VDL

MNI: Canada CPI Rise Is Broader Than End Of Sales Tax Break

test headline

MNI China Daily Summary: Tuesday, March 18

MNI BRIEF: China Electricity Demand Up In February

MNI BRIEF: Beijing Industrial Value Added Up In Jan Feb

EZ/UK T-Bill Calendar: Portugal, EU Auction on Wednesday

EZ/UK Bond Supply Calendar: 30-Year Bunds On Offer Wednesday

MNI: US FEB INDUSTRIAL PROD +0.7%; CAP UTIL 78.2%

GERMANY: Handelsblatt Report on Lingering Uncertainties Ahead of Bundestag

GERMANY: Union/SPD Migration Alignment After Turmoil Threatened Debt Deal (BILD)

GERMANY: Official Interim Election Results Tilt Towards Missing BSW & FDP

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

PERU: CPI Inflation Falls To Lowest Since 2018, As Expected

PERU
BulletPeruEM BulletEmerging Market News
  • CPI inflation fell to its lowest level since September 2018 in February, keeping the door open to a further possible rate cut later this month. Data released on Saturday showed that headline consumer prices rose by 0.19% m/m last month, broadly as expected, following a 0.09% m/m decline in January. Given strong base effects, this brought the annual rate of inflation down to 1.48% y/y, from 1.85%, close to the 1.47% consensus. Core inflation also remained well contained, with the annual measure falling to 2.1% y/y, from 2.4%, while services inflation declined by 37bp to 2.5%.
    • Goldman Sachs sees m/m inflation firming in March due to the seasonal resetting of education tuition fees, but expects the annual measure to decline further on the relatively high base from the year before. They see annual inflation closing 2025 at a modest 2.2%. They note that thus far there is limited evidence of any passthrough from the sizable 10% minimum hike to prices in the labour-intensive services sector.
    • Meanwhile, BBVA said that the low read will likely keep the central bank comfortable in its easing cycle, with it potentially considering additional cuts.
    • The next BCRP MPC meeting is scheduled for March 13. Last month, the central bank stayed on hold at 4.75%, while maintaining a data dependent stance. Governor Velarde has said that he expects headline inflation to fall to 1% by the end of March, before picking up again to close the year at around the 2% target.
243 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • CPI inflation fell to its lowest level since September 2018 in February, keeping the door open to a further possible rate cut later this month. Data released on Saturday showed that headline consumer prices rose by 0.19% m/m last month, broadly as expected, following a 0.09% m/m decline in January. Given strong base effects, this brought the annual rate of inflation down to 1.48% y/y, from 1.85%, close to the 1.47% consensus. Core inflation also remained well contained, with the annual measure falling to 2.1% y/y, from 2.4%, while services inflation declined by 37bp to 2.5%.
    • Goldman Sachs sees m/m inflation firming in March due to the seasonal resetting of education tuition fees, but expects the annual measure to decline further on the relatively high base from the year before. They see annual inflation closing 2025 at a modest 2.2%. They note that thus far there is limited evidence of any passthrough from the sizable 10% minimum hike to prices in the labour-intensive services sector.
    • Meanwhile, BBVA said that the low read will likely keep the central bank comfortable in its easing cycle, with it potentially considering additional cuts.
    • The next BCRP MPC meeting is scheduled for March 13. Last month, the central bank stayed on hold at 4.75%, while maintaining a data dependent stance. Governor Velarde has said that he expects headline inflation to fall to 1% by the end of March, before picking up again to close the year at around the 2% target.