Analysts raise expectations for Peru’s 2022 inflation – central bank poll

LIMA (Reuters) – Analysts and market members in Peru raised their expectations for the Andean nation’s 2022 inflation on Friday, a month-to-month central financial institution survey confirmed, saying they now forecast a rise of between 6.5% and seven.5%, towards a 6% to 7% rise beforehand projected.

Annual inflation in Peru, the world’s second-largest copper producer, reached 8.74% final month, its highest degree since July 1997, pushed by hovering meals and vitality costs on the again a world costs spike associated to the Ukrainian battle.

In a bid to rein in excessive client costs, Peru’s central financial institution has been climbing rates of interest – in July, it raised the nation’s benchmark fee by 50 foundation factors to six%, a 13-year excessive. Peru’s annualized inflation goal ranges from 1% to three%.

The newest ballot additionally confirmed that market members within the nation anticipate the native economic system to increase 2.5% to three% this yr, a spread just like the one seen within the earlier survey. The central financial institution itself sees the native economic system rising 3.1% in 2022, after a 13.3% leap in 2021.

(Reporting by Marco Aquino; Enhancing by Alistair Bell)