Peru’s inflation is at its highest level in 24 years

The inflation annualized in Peru reached its highest level in 24 years in April, while the mining country faces protests over the rise in the cost of living due to a rise in prices around the world caused by the Russian invasion of Ukraine.

The Consumer Price Index of Metropolitan Limathe reference for inflation in Peru, rose to 7.96% in the last 12 months through April, the statistics institute (INEI) said on Sunday, the highest since May 1998 when the country was hit by the climate phenomenon of the The child.

Although the monthly inflation slowed down in April, posting 0.96% from 1.48% in March, the prices of the staple foods They remain high due to the reduction in the supply of fertilizers and fuels, disproportionately affecting poor residents of Peru and other emerging economies, which has worried governments.

In order to mitigate inflation, the Peruvian central bank raised at the beginning of April the interest rate the country’s benchmark by 50 basis points to 4.5%, the highest since 2009.

The protests over the rise in the cost of living in Peru are part of a wave of social conflicts faced by the government of the leftist president peter castlewhich have slowed down some operations in the key mining sector.

Peru, the world’s second largest producer of copper, registered an inflation of 6.43% in 2021, much higher than the annual target range of between 1 and 3% set by the central bank.

The Peruvian government officially readjusted some of its projections for this year over the weekend, such as the expansion of the economy to 3.6% from a previous 4.8% -as announced by the minister oscar graham—; while it estimated zero growth in private investment from a previous 5.5% increase.

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