Arequipa is the most expensive city in the south due to October inflation

In October 2023, annual inflation amounted to 4.5% nationwide, according to the National Institute of Statistics and Informatics (INEI).

This figure maintains a constant decline from its peak of 8.8% in June 2022. However, inflation remains above the 1% to 3% target range established by the Central Reserve Bank (BCRP). This persistenceIt is mainly due to events such as heavy rains and temperature changes associated with the El Niño Phenomenon (FEN), that have affected the production of important agricultural products. How have prices changed in southern cities?

High inflation

Inflation is defined as the variation of Consumer Price Index (CPI), which is an indicator of the cost of a basket of goods and services consumed on average by families in the Peru.

During the first half of 2023, inflation in southern cities remained on average above 8%, reaching a maximum of almost 11% in February, amid social protests and climate phenomena. In October, inflation in the main southern cities, such as Arequipa (5.4%), Puno (5.3%), Cusco (4.7%), Abancay (4.7%) and Tacna (4.7%), It is above the national average of 4.5%. Only the city of Moquegua registers a lower rate (4.0%).

Food inflation

The main item that explains the still high level of inflation is food and beverages, which includes food and non-alcoholic beverages, alcoholic beverages, and contract food and beverage services. Inflation in this area went from a maximum of 17% on average in February to just over 7% in October. Tacna has the highest food and beverage inflation in September, with 8.7%, while Moquegua has the lowest, with 5.2%. In other cities such as Cusco (7.3%), Arequipa (8.3%), Abancay (7.3%) and Puno (7.0%), food and beverage inflation also decreased, but still remains above 6%.

Food prices

High inflation in the food sector in southern cities It is mainly explained by the increase in fruit prices. Tacna (33.2%) had the highest inflation in this category, while Moquegua registered the lowest rate (12.8%). The increase in prices of vegetables, legumes and tubers also remains high in most southern cities, such as Puno (11.2%). For its part, Moquegua has the lowest inflation (3.2%) in this category.

Similarly, the increase in the price of bread and cereals in cities such as Abancay (8.7%) or Puno (6.5%) has also been putting upward pressure on food inflation in these cities. Meanwhile, the food category with the lowest inflation rates is meat, for which the city of Puno barely registered a price increase of 0.9%, while in Tacna (-6.2%), Arequipa (-1.6%) and Abancay (-1.1%) the prices of these products have been decreasing.

The data

• Child effect. In October 2023, inflation in Lime It was reduced by 0.32%, which brings it closer to the goal set by the Central Reserve Bank, the decrease will depend on the natural phenomena with El Niño.