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11/2/08

The Peru Inflation update

October in Peru came in at 0.61% CPI....

.....which means the Central Bank's "readjusted forecast" (i.e. we really screwed up by saying 1% to 3%, so we 're going again with 5.6% to 5.7%) is already being left behind by inflation that just won't stop. This time the INEI is blaming the electricity and water price increases. If that sounds familiar to the regular IKN readers, that's because your prescient Otto said it was going to feed inflation into the system way back in August.

So YoY figures for Lima + Metro is 5.94% (and as Jurgen Schuldt smartly pointed out in this chart, the vast majority of Peru has worse figures than that). It's shaping up to get over 6.5% by the end of the year, and with food price inflation now at over 10% it's the poor sector of Peru that will end up suffering the most. The more that things change, eh...........