Weekly Report - 09 March 2017 (WR-17-09)

PERU | Inflation exceeds target. Peru’s national consumer price index (CPI) increased by 0.34% in February, according to the national statistics institute (Inei), bringing the cumulative rolling 12-month national inflation rate to 3.34%, which is above the official 1%-3% target range set by the central bank (BCRP) in 2007. Since 2007, Peru’s average annual inflation rate has remained below the top end of the BCRP target at 2.9%. However, with the February inflation rate results, Peru’s CPI has now been above the BCRP’s target range for six consecutive months, sparking concerns that it is losing its tight grip on inflation.