Consumer price inflation in Lima accelerated in June, the national statistics agency INEI reported Wednesday, underscoring persistent upward pressure on prices driven by food and energy factors.
On an annual basis, prices in Lima rose 4.01% in June compared with the same month a year earlier, above May's 3.91% pace. The June outcome also exceeded the median forecast of 3.81% from a poll of 10 economists conducted by Bloomberg.
Month-to-month, consumer prices increased 0.23% in June, after a 0.16% decline in May. The monthly rise also outstripped the median estimate of 0.06% from that Bloomberg survey.
Inflation in Peru has remained above the central bank's target band of 1% to 3% for a fourth straight month. Rising food costs are cited as a contributing factor to the elevated inflation reading, which is occurring against the backdrop of a recent global energy shock.
INEI and other official commentary trace the buildup in price pressures back to March. The factors cited include a domestic gas crisis, higher global fuel prices and adverse weather that damaged crop yields. Those combined shocks have placed upward pressure on consumer prices in recent months.
Monetary policymakers will have fresh data to consider ahead of the central bank's next policy committee meeting, scheduled for July 9. The timing of the meeting falls several weeks before a scheduled change in the executive branch: President-elect Keiko Fujimori will be sworn in on July 28 for a five-year term, following a narrow victory in the presidential runoff.
Fujimori, described as a conservative and the daughter of the late former President Alberto Fujimori, will assume office after the central bank's July policy meeting. The report noted that Peru has experienced relatively low inflation among emerging-market economies in recent years, but recent developments have pushed the annual rate above the central bank's target range.