Peru is hot with low inflation, GDP grew at 11% last year with 2.3% inflation

Via Bloomberg

Annual inflation accelerated to 2.31 percent in August as prices climbed 0.27 percent from July, Peru’s statistics agency said today in Lima. The readings were in line with the median forecasts of analysts surveyed by Bloomberg.

The central bank stepped up the pace of increases to its benchmark lending rate last month on concern a that a stronger- than-forecast rebound in South America’s sixth-largest economy could fuel inflation next year. Policy makers last month raised the benchmark rate by a half-point to 2.5 percent after quarter- point increases at their three previous monthly meetings.
There aren’t any strong inflationary pressures at the moment,” said Carola Sandy, an economist with Credit Suisse Group AG in New York. “The central bank is more concerned about what will happen in the future if the economy continues to grow the rate it is now.”

Gross domestic product jumped 11.9 percent in June from a year earlier, led by the fastest growth in manufacturing since 1994. Private investment may fuel a 9.4 percent increase in domestic demand for goods and services after a 2.9 percent contraction last year, the Finance Ministry said Aug. 27.

Unemployment in the Lima metropolitan area fell to 7 percent in July, the lowest rate since at least 2001.

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