Peru’s October headline inflation ticked up to the BCRP’s 2.0% target. Importantly, core CPI measures also continued to consolidate towards the target. Prices of all items ex-food and energy printed at just under 0.1% in October, bringing YoY inflation down to 2.51% from 2.64% in September. While the base effects in November may not be as favorable, we expect a continued consolidation lower in the YoY core numbers in the coming month. The BCRP recently appears to be more comfortable with the normalization of policy given the continued fall of core CPI metrics well within the target zone. The solid CPI numbers should allow the BCRP to cut by 25bp at its next meeting on 07 November 2024.