Key insights
- Peru's rising inflation, driven by gas crises, oil prices, and weather, poses a slight bearish signal for US equities. Higher global inflation can lead to tighter monetary policies in emerging markets, potentially impacting global growth and indirectly affecting US corporate earnings. Political instability adds to the uncertainty.
Investing.com -- Inflation in Peru’s capital Lima accelerated for a sixth consecutive month in April, reaching 4.01% year-over-year, the national statistics agency INEI reported Friday.
The reading exceeded the 3.80% rate recorded in March and surpassed the median economist forecast of 3.70% surveyed by Bloomberg. April’s figure represents the highest annual inflation rate since October 2023, when it stood at 4.34%.
On a monthly basis, consumer prices in Lima rose 0.52% in April, down from March’s 2.38% increase but above the median estimate of 0.22%.
Peru maintained inflation below the upper limit of its 1% to 3% target range for two years until March. That month saw the largest monthly price jump in 32 years, driven by a domestic gas crisis, rising global oil prices, and adverse weather conditions.
The country votes in a presidential runoff election in June. The winner will become Peru’s 10th head of state since 2016.
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