Peru Inflation Rate Ticks Down to 3.9% in May

The annual inflation rate in Peru’s capital, Lima, eased to 3.9% in May 2026 from 4.01% in the prior month, which was the steepest since October 2023. Still, it remained above the central bank's 1%-3% target range for the third straight month. Prices slowed primarily for food & non-alcoholic beverages (2.88% vs 4.16% in April); alcoholic beverages & tobacco (0.05% vs 0.59%) and furnishings & household equipment (2.81% vs 2.96%). Conversely, prices advanced further for some CPI items, including transportation (15.10% vs 15.02%); restaurants & hotels (3.98% vs 3.54%) and recreation & culture (2.07% vs 1.79%). At the same time, housing & utilities prices rose by 1.04%, after decreasing by 0.22% previously, on the back of adjusted residential electricity rates. On a monthly basis, the CPI fell by 0.16%, the first decrease since October 2025, reversing a 0.52% rise in April, mainly due to lower prices in food (-1.69%) and transport (-0.19%).

The annual inflation rate in Peru’s capital, Lima, climbed to 3.80% in March 2026, from 2.21% in the previous month. This marked the highest reading since October 2023 and exceeded the central bank’s target range of 1%–3%, with Central Reserve Bank (BCR) Governor Julio Velarde attributing the increase to a natural gas emergency caused by the rupture of the Camisea gas pipeline earlier in the month, as well as rising fuel prices driven by the Middle East conflict. He also noted that the shock is expected to be temporary and to ease over the course of the year. The central bank expects that year-end inflation will settle at 2.4%, largely influenced by higher fuel costs, which in turn affect food prices. Costs increased at a faster pace for both food and non-alcoholic beverages (5.4% vs 3.99% in February) and transportation (11.47% vs 1.95%). On a monthly basis, consumer prices jumped to 2.38% from 0.69% in February, marking the highest level since December 1993.

The annual inflation rate in Peru’s capital, Lima, accelerated to 2.21% in February 2026 from 1.70% in the previous month. This marked the highest reading since November 2024 but remained within the central bank’s target range of 1% to 3%. Prices grew in food and non-alcoholic beverages (3.99% vs 2.13% in January), alcoholic beverages and tobacco (0.97% vs 0.94%), health (0.74% vs 0.67%), and transportation (1.95% vs 1.81%). At the same time, deflation slowed for housing utilities (-1.25% vs -2.52%). In contrast, costs decreased in clothing and footwear (1.34% vs 1.43%), recreation and culture (1.94% vs 1.98%), education (3.84% vs 4.02%), and restaurants and hotels (2.56% vs 2.66%). On a monthly basis, the CPI in Lima increased by 0.69% in February from 0.10% in the preceding month.