As of October, inflation accumulates a growth of 5.23%

The consumer price index (CPI) rose 0.58% in October 2021 in metropolitan Lima; Thus, between January and October, inflation accumulates an advance of 5.23% and in annualized terms (November 2020-October 2021) registers a growth of 5.83%, as revealed by the INEI.

Both the evolution of this year and the annualized rate are above the target range of the Central Reserve Bank of Peru (BCRP), which is between 1% and 3%.

On October, the rental prices of housing, fuels (LPG) and electricity (1.65%); transport and communications (0.93%), as well as food and beverages, with 0.53%, they were the ones who climbed the most.

The economist Arturo García explained that the upward pressure of the inflation it is maintained, mainly, due to the high prices of food and energy at the international level. In fact, the price of oil topped $ 80 last month. While the price of gas increased by 180%.

On the other hand, the expert remarked that despite the fall in the price of the dollar at the beginning of last month – with the change in the ministerial cabinet – this “has not yet been reflected in prices.”

The central bank, in its inflation report presented last September, stated that the CPI could end the year at 4.9%, but it would begin to fall in the eleventh month of the year; if global prices began to fall progressively.

“Indeed, like the BCRP, I estimate that in the months of November and December the increase in inflationary pressure will decrease, unless there are new events for the exchange rate to increase “, Garcia expressed to La República.

Prices rising and falling

Products that increased the most: Italian tomato (14.1%), LPG (13.1%), passion fruit (11.8%), strong avocado (11.3%), mandarin (10.5%), national air tickets (10.5%), onion (9.6%) and lemon (8.9%).

Products that dropped the most: Chinese onion (-4.5%), horse mackerel (-5.2%) and strawberry (-5.3%). “I estimate that the months of November and December will see a decrease in the increase in inflation.”