Inflation in April finally fell below the 8% threshold, after touching its maximum peak in almost three decades at the end of 2022. Along these lines, the president of the Central Reserve Bank of Peru (BCRP), Julio Velarde, assured that the Consumer Price Index (CPI) —that is, the cause of the headache in the household economy— will continue to fall.
“Inflation has gone down and will continue to go down”said the banker to the media, during the presentation of the one sol coin that commemorates Francisco Xavier de Luna Pizarro. Likewise, he pointed out that the consensus with the rest of his peers is that “inflation is clearly declining.”
Inflation increases food prices. Photo: The Republic
However, when asked if there would be any delay in the normalization of inflation -its return to the target range within 1% to 3%-, Velarde emphasized that “it may take a little longer than one expects, (…) but in December, January or February (of next year) it will return.
And, regarding interest rates —used by the BCRP to contain the advance of inflation—, he stated that they will reduce them when “they are more comfortable” and perceive that inflationary expectations have been reduced as necessary, although he reiterated that everything is subject to to the next balance they make in June.
Finally, about the GDP, confirmed that it would close the first quarter in negative or with no growth.
Source: Larepublica
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