Peru's Inflation Hits 4.01% in April, Highest Since Last October

Inflation Rate Overview#

In April, inflation in Lima, Peru's capital, rose to 4.01% year-over-year, according to the national statistics agency INEI. This marks the sixth consecutive month of increasing inflation.

Comparison to Previous Months#

This April figure surpasses March's inflation rate of 3.80% and is higher than the median forecast of 3.70% from economists surveyed by Bloomberg. The current rate is the highest since October 2023, when inflation was recorded at 4.34%.

Monthly Price Changes#

On a monthly basis, consumer prices in Lima increased by 0.52% in April. This is a decrease from March's significant rise of 2.38%, but still above the expected increase of 0.22%.

Context and Future Outlook#

Peru had successfully kept inflation within its target range of 1% to 3% for two years until March. The recent spike in inflation was attributed to a domestic gas crisis, rising global oil prices, and adverse weather conditions. As Peru approaches a presidential runoff election in June, the economic landscape will be a critical issue for voters.