BCRP: “The problems we have in the south are generating significant price increases”

After two weeks of protests in Peru, calling for the resignation of President Dina Boluarte, the Central Reserve Bank of Peru (BCRP) indicated that, although it is premature to quantify the economic impact of the mobilizations, the greatest impact would be in the southern zone, which represents 15% of the Domestic Gross Product (GDP) of the country.

“What we are currently seeing is an impact in the southern part of our country. The information that comes from our branches mentions transportation problems, such as land imports that always exist for soybean meal, which is an important input for the production of chicken, eggs, and beef; there is also a disruption in trade. There is an interruption in what is cancellations, unfortunately, of international receptive tourism, which is estimated to have an impact of US$100 million per month. In general, this is concentrated today in the southern zone of our country, which represents 15% of our country’s GDP,” explained Adrián Armas, Central Manager of Economic Studies at the BCRP.

In this line, the official of the issuing entity specified that he is observing the closure of businesses in the south of the country due to the protests, which has even made it difficult to identify prices in this area; however, he explained that as a result of the road blockade there has been an increase in the costs of some foods.

“The problems we have in the south are generating significant price increases. To give a reference to our branches, in the case of Cusco, the chicken has risen from S/12 a kilo to S/16; There is currently a situation of less supply, precisely because of the multiple interruptions that we are seeing on highways in the south of our country,” Armas added during the presentation of the January 2023 Monetary Program.