Peru Ends 2023 With Inflation Rate of 3.24%  

• Peru's inflation closed 2023 at 3.24%, the lowest annual rate in three years, official data showed on January 1, 2024, after consumer prices rose marginally in December. The easing of inflationary pressures is a small boost for the country in the throes of an economic recession.
• The central bank had initially projected inflation in 2023 would end at 3.8% before adjusting its forecast to 3.1% last month following a string of promising inflationary indicators that saw a quicker-than-expected recovery.
• The 2023 inflation rate is the lowest rise since 2020, when prices in the mining nation rose 1.97% for the year; and also stands as one of the lowest rates in Latin America.
• The latest data brings Peru's inflation within a breath of the central bank's target range of 1% to 3%. Notably, at the start of 2023, consumer prices in Peru had risen 8.66% in the 12 months through January.
• Nonetheless, the world's second-largest copper producer is struggling with the adverse effects of the El Nino weather phenomenon, lower private investment mainly in mining, and the threat of more anti-government protests.
• The central bank has warned that the fight against inflation could be hampered by a stronger El Nino in 2024.

 (Source: Reuters)