• May CPI inflation data are due to be published at 1600BST(1100ET) tomorrow, according to Bloomberg, although the data may be released earlier in the day as per recent inflation releases. The latest Bloomberg survey shows that analysts expect the headline inflation rate to moderate another 20bp to 2.22% y/y, bringing it close to the middle of the central bank’s 1-3% target range. In m/m terms, prices are expected to rise by 0.13% m/m (vs. -0.05% m/m prior).
  • Note, however, that BCRP President Velarde said yesterday that monthly inflation could be close to 0% in May, flagging some downside risk to consensus expectations. On the monetary policy front, he also said that cutting interest rates may not boost the economy that much because of Peru’s low potential GDP growth, which he estimates at 2.5%, below the BCRP’s 3% forecast for this year.

PERU: May CPI Inflation Data Expected Tomorrow

Last updated at:May-31 11:48By: Keith Gyles
  • May CPI inflation data are due to be published at 1600BST(1100ET) tomorrow, according to Bloomberg, although the data may be released earlier in the day as per recent inflation releases. The latest Bloomberg survey shows that analysts expect the headline inflation rate to moderate another 20bp to 2.22% y/y, bringing it close to the middle of the central bank’s 1-3% target range. In m/m terms, prices are expected to rise by 0.13% m/m (vs. -0.05% m/m prior).
  • Note, however, that BCRP President Velarde said yesterday that monthly inflation could be close to 0% in May, flagging some downside risk to consensus expectations. On the monetary policy front, he also said that cutting interest rates may not boost the economy that much because of Peru’s low potential GDP growth, which he estimates at 2.5%, below the BCRP’s 3% forecast for this year.

MNI Podcasts

Unearthing fresh policy thinking & market intelligence.

Copyright 2024Twitter, Xlinkedin logo