MEF estimates that inflation will be close to 9% in January, but “it will be temporary”

The head of the Ministry of Economy and Finance (MEF), Alex Contreras, He affirmed that inflation in January 2023 will be close to 9% as a consequence of the protests registered at the national level, but that it will be temporary. It should be remembered that in December 2022 this stood at 8.46%, the highest in 26 years. The minister commented that he believes that the Central Reserve Bank (BCRP) is doing a good job in relation to monetary policy.

“Inflation from October to November began to moderate, there was a jump in December as a result of the protests and unfortunately the greatest impact of the protests is being generated in prices, which is why there would be an increase, but temporary. We estimate that inflation could close in January at between 8.8% and 8.9%, depending on how communications are restored”, the official declared to the local press.

The head of the MEF specified that, to mitigate this impact, different measures have been approved, such as bonds for the vulnerable population and the additional Christmas bonus, but most importantly, “what generates a change in the standard of living of the population”, is the possibility of finding a stable job and that is what his management is aiming at these days.

Regarding the products of the basic basket whose prices have registered an increase, the minister pointed out that users must make their “negotiation capacity” prevail and look for substitutes, so that this can mitigate the increase in costs.

Contreras also commented that he has met with representatives of different mining companies because several have been affected in recent weeks in the context of the protests, some have even had to paralyze their operations. “The key is to highlight that, despite the context, they trust Peru and many of these companies want to continue increasing their participation,” he said.