Peruvian Inflation Rises FurtherGLOBAL ECONOMICS

Key arguments

• Annual inflation at 4.6% y/y remains above the BCRP target for a sixth consecutive month, but the monthly 0.12% reading was in line with consensus (0.14%).
• Part of the annual rise reflects a statistical base effect, as September 2025 monthly inflation was 0.0%.
• Core inflation held at 4.5% y/y, yet core excluding transportation stands at 1.8%, inside the target range and below its midpoint.
• Transportation, restaurants and hotels drove the monthly result, partly offset by lower meat prices in food and non-alcoholic beverages.

Corresponding source evidence

1. As a result, annual inflation increased from 4.4% in August to 4.6% y/y in September, remaining above the BCRP’s target range (1% –3%) for the sixth consecutive month.
2. Moreover, over the past five months, from May to September, monthly inflation readings have remained broadly in line with their historical averages of the last 20 years, excluding the pandemic period, and in some cases have even been below those levels (chart 1).
3. Regarding core inflation, prices increased by 0.07% in September, while the annual rate remained unchanged at 4.5%.