(Bloomberg) -- Inflation in Peru’s capital slowed more than any economist expected last month, nearing the center of the central bank’s target range.
Annual inflation rose 2.13% in July from the same month a year earlier, below the 2.24% median estimate of eight economists surveyed by Bloomberg and lower than any of their forecasts. On a monthly basis, prices rose 0.24%, also coming in under the median 0.4% estimate and below all forecasts, the national statistics institute reported Thursday.
Inflation in Peru remains the lowest among Latin America’s major economies and has been within the central bank’s target range since April. The bank’s president, Julio Velarde, has said he expects inflation to close the year at around 2.2%, toward the center of the 1%-to-3% target range.
In recent months, the central bank has more closely been eyeing core inflation - a metric that excludes food and energy costs - and which has proved more stubborn than headline inflation.
The central bank will announce its latest interest rate decision next Thursday. It has held rates at 5.75% for two months in a row, a move that’s irked government officials who would like to see lower borrowing costs to boost growth.
Still, Peru’s economy has been expanding above expectations, growing 5% in April and May as it recovers from a recession last year. President Dina Boluarte was bullish on the economy in a national address last week, saying gross domestic product will expand above the forecast 3.1% in 2024.
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