Inflation continues to exceed 8% in Peru, why?

National Institute of Statistics and Informatics (St.ERI) reported that annual price growth reached 8.99% in February after rising 0.43% last month. Thus, inflation has been above 8% for about 10 months.

Phase Consultores director Juan Carlos Odar clarifies that Puerto Maldonado It was the most affected city, as inflation in the area exceeds 17%.

“Essentially, this geographic differentiation in the inflation trajectory has continued, while in the north inflation continues to decline, in cities like Chiclayo and Huaraz, on the other hand, we are seeing very strong price increases in Puerto Maldonado,” he said. RPP. .

Odar points out that in other cities, Prices These are Abancay, Cusco, Pucallpa and Cerro de Pasco.

Despite the fact that at the international level there is a decrease in various imported resources, experts note that the increase in prices in the Peruvian market is mainly due to local factors, and food products rose the most last month.

“Basically this geographical pattern price increase Under the influence of weather anomalies, on the one hand, the protests that continue in the south, on the other hand, put pressure on inflation at the national level. This does not require further intervention by the Central Bank now at its March meeting, the rate will remain stable,” he added.

UPC Economics Director Claudia Sicoli agrees that the fact that inflation remained high in February is due to the increase in national agricultural production.

“If unfavorable conditions for agriculture persist, such as what is recorded in the form of rains, landslides, blockades, which increase the prices of agricultural products and cause inflation in food which has the greatest impact on people with lower incomes”

One of the foods most affected by inflation in February was gutted chicken, a staple in the family food basket. He price birds rose 10.78% in February and cost about 12 soles per kilogram in Lima’s markets.

Southern Poultry Association spokesman Alex Geri warns that bird flu could see the price rise even more in the coming months.

“They had to liquidate more than half a million breeders, which is more or less 15 or 16 million. chickens drink a month (…) Obviously it will be felt next month. In the first days of April, the chicken will be sold at 15 soles, and the egg – within 11 or 12 soles, ”he adds.

Other important increases in February were gasoline costs, non-state school fees and restaurant menus, but prices for potatoes, avocados, bonito and electricity rates are reported to have fallen.

At the moment, experts point out that, despite the fact that the fall inflation during this year, it is possible that 2023 prices are not yet in the 1% to 3% target range expected by BCR.