Inflation remained high in November, why?

National Institute of Statistics and Informatics (St.ERI) published the latest price report for the year, showing that annual inflation reached 8.64% nationally in November, without any decline.

In Lima inflation over the past 12 months was 8.45%, slightly higher than reported in the previous month. Economist and director of Phase Consultores Juan Carlos Odar notes that it will take several more months to see a real drop in prices.

“What we are seeing is that this month’s data was higher than expected, which is why the annual downtrend has been interrupted. This is what will probably lead to the fact that in the case of Lima we will close with inflation above 8% and in some cities of the country we will probably close with rates above 10%,”

In 15 cities of the country inflation above average, reaching even 11.51%. The regions that recorded the highest inflation this year are Huaraz, Cerro de Pasco and Ica.

According to experts, one of the reasons for the greatest growth in these cities is transportation costs.

What has risen in price the most?

The report indicates that last month the categories with the highest hiking there were alcoholic drinks, restaurants, hotels and food.

Tuna, avocado and chicken were among the most expensive food products, which also led to a rise in the price of menus in restaurants.

“We’ve had a rise in family basket staples. This situation occurs despite the fact that some prices are in the process of declining, for example, corn is declining, but we are seeing an upward trend in soybeans and wheat,” commented Antonio Castillo. Manager of the Economic Research Institute of the National Society of Industry (SNI).

Households have also been hit by the rate hike. electricity housing, which rose by an average of 2.6% in November alone, but in Lima it has already risen by more than 10% this year.

Will these prices continue to rise in the last month of the year? Economist Enrique Diaz thinks we still have a few months of high prices.

“The conditions for slowing down prices have not yet been created. The international environment is still under high price pressure due to energy factors, international trade, food, and domestically we are still in a low growth situation, so the demand is still not sold, and we still have not seen full effect, which is with the increase expenses on the agricultural side,” he explained.

It is worth noting that the Central Reserve Bank (BCR) predicts that the greatest decline in inflation will be felt in March, and assures that the worst part has already been passed.