The annual inflation rate up to July in Peru stood at 8.74%, its highest level since July 1997, due to a rebound in food and energy costs due to the global increase in prices due to the Russian invasion of Ukraine.
The level of inflationary expectation is key in making decisions of the monetary politics of the central bank. In July, the entity increased the reference interest rate by 50 basis points, to 6.0%, its highest level in 13 years.
The Central Bank referred in a report that the 12-month inflation expectations of economic analysts and the financial system were reduced, however, to 5.16% in July from 5.35% in June, according to the survey carried out at the end of the previous month. . The bank’s annualized inflation target range is between 1% and 3%..
In its latest quarterly report from the central bank on projections released in June, the monetary agency estimates an accumulated inflation of 6.4% for 2022.
Regarding growth expectations for this year, the bank’s July survey said that economic agents projected an expansion between 2.5% and 3.0%, a similar range compared to the previous monthly survey of the agency.
The Central Bank expects the local economy to expand by 3.1% this year, after growing by 13.3% in 2021, the highest rate on record, after a strong contraction in 2020 when it was hit by the coronavirus pandemic.
Source: Ambito
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