On the day of this Wednesday, September 28, in Perumin 35the president of Central Reserve Bank of Peru (BCR), Julio Velardeestimated that inflation would begin to decline substantially only between March and June of next year.
Along these lines, according to information collected by Reuters, he assured that such a long period of inflation above the target range —between 1% and 3%— has not been seen so far, to the point that the expected pressure on prices for this year it would be the highest since the mid-1990s.
“We have never had such a long period outside the target range. What we do see is that higher inflation rates do not seem to have taken hold going forward. When there were higher stages of inflation, merchants anticipated the supplier and raised prices; that is not happening,” he explained.
On the other hand, he stated that “probably” it will not be necessary to further raise the reference interest rate to address this phenomenon.
It is worth noting that, since the outbreak of the inflationary problem, the BCRP raised its reference interest rate to 6.75%.