Peru Inflation Eases In May For Second Straight Month

• Peru's monthly inflation rate slowed for the second month in a row in May to 0.09%, bringing annual inflation down to its lowest level in three years, according to data published on Saturday, June 1st,  by the national statistics agency INEI.
• On a yearly basis, prices in May slowed to 2.0%, within the central bank's target range (1%-3%) and below the annual rate recorded a month prior as the country shakes off the effects of the COVID pandemic and other shocks.
• The May easing was the result of a drop in the prices of both food and non-alcoholic beverages, according to the consumer price index (CPI) for Metropolitan Lima, the inflation reference for the Andean nation.
• Core inflation - which excludes food and energy prices because of their high volatility - rose 0.16% last month.
• Annual inflation falling within the central bank target range of between 1% and 3% could help the bank maintain its monetary easing cycle. Peru's central bank reduced the key interest rate by 25 basis points to 5.75% in May, following a reduction in April and forecasts that the CPI will continue its downward trend this year.

(Source: Reuters)