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PERU: Natixis Say High Core CPI May Limit BCRP Willingness to Continue Easing

PERU
  • While the headline CPI rate in Peru remains within the target range, the core rate, which excludes food and energy, remains above central bank expectations.
  • While inflation in Peru remains low compared to other countries in the region, there is still some concern over core dynamics which made little progress in June. 
  • Natixis believes that while the rise in the headline rate should not be cause for concern as it occurred mostly due to base effects, if core prices remain at the upper bound of the target range it may limit policymaker’s willingness to continue the easing cycle this week.

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