Peru's Annual Inflation to Soar Over 8.8% As Blockades Hit Food Prices
- Inflation in Peru will likely end January at a rate between 8.8% and 8.9% on an annual basis, the country's minister of economy said on Monday, as protests and road blockades push up food prices.
- However, he expects the impact to be temporary due to economic stimulus measures the government is proposing for regions roiled by protests.
- Peru has been embroiled in political turmoil since December, with anti-government protests blocking roads and clashes with security forces leading to the death of dozens of people. In December, Peru registered monthly inflation at 0.79%, ending the year at 8.46%, the highest annual measurement in the last 26 years.
- Despite the high rate in January, the country's central bank expects a decreasing trend in year-on-year inflation in March, and a return to the inflation target range of between 1% and 3% by the end of 2023.