Inflation in Lima climbed to 4.01% year-over-year in April, the national statistics agency INEI reported Friday, continuing a six-month sequence of rising consumer prices in the Peruvian capital.
The April inflation rate exceeded the 3.80% recorded in March and topped the median economist forecast of 3.70% in a Bloomberg survey. The 4.01% reading is the highest annual inflation rate recorded in Lima since October 2023, when the rate was 4.34%.
Measured on a month-over-month basis, consumer prices in Lima increased 0.52% in April. That monthly gain was smaller than March's 2.38% increase but remained above the median estimate of 0.22%.
Peru had kept inflation below the upper bound of its 1% to 3% target range for two years until March. That month saw the largest monthly price jump in 32 years, a spike the agency attributed to a domestic gas crisis, rising global oil prices, and adverse weather conditions.
The timing of the inflation acceleration coincides with a politically sensitive period. Peru is scheduled to hold a presidential runoff election in June. The victor of that contest will become the country's 10th head of state since 2016.
These readings underscore the immediate factors flagged by INEI as contributing to recent price volatility. The April figures show a moderation in monthly momentum compared with March, but the annual pace of consumer price growth in Lima remains elevated relative to the lower bound of the central bank's stated target range in prior years.
Market participants and policymakers will likely watch subsequent inflation releases closely, given the combination of energy-related pressures and seasonal weather effects that the statistics agency identified as important drivers of the March jump and that continue to shape April's data.
Data snapshot
- Annual inflation in Lima: 4.01% in April.
- March annual inflation: 3.80%.
- Bloomberg median forecast for April: 3.70%.
- Monthly change in April: +0.52% (March: +2.38%).
- Highest annual rate since October 2023 (4.34%).