Peru’s core CPI rose 0.4% MoM in December, up from 0.1%, and in line with seasonal patterns, largely driven by a seasonal rise in transportation prices. There was also a one-off impact from early December road blockages from the informal mining sector due to the congressional vote on permit extensions. YoY core inflation still rounds down to 2.6% and the picture for the BCRP is not much changed based on the data. The BCRP is nearing neutral and is unlikely to cut more than twice this cycle. The February CPI data will likely be the best opportunity for more meaningful improvement in core CPI and will be a datapoint to watch.
For more, including market takeaways, please see full note.