Peru’s inflation reached its highest monthly rate in over three years

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In July, Peru’s inflation reached its highest monthly rate in over three years. On Monday the government said inflation was at 0.79%, a figure that exceeded market forecasts.

A Reuters poll showed a median of 0.50% for the variation in July’s Consumer Price Index in Metropolitan Lima, the benchmark of inflation in the country.

According to analysts the increase would have been driven primarily by the food and beverage industries, primarily due to a rebound in the prices of poultry products.

The July increase represented the highest monthly rise in the rate of inflation since March 2008 when it reached 1.04%, according to Central Bank data. It also outpaced the 0.10% advance in prices last month.

According to an article in Gestión, consumer prices this year have increased by 3.06%; slightly above the Central Bank’s target range of 1 to 3%.

The Central Reserve Bank (BCR) raised its key interest rate for five consecutive months this year, up to 4.25%, in an attempt to contain inflationary pressures amid the worldwide escalation of food prices and energy.

The agency estimated that Peru would close the year with an inflation rate between 3 and 3.5%.

On Monday the government said inflation was at 0.79%, a figure that exceeded market forecasts.

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