Peruvian Inflation and Consumer Price Trends: A May Overview

Peru's consumer prices dropped by 0.16% in May, marking the first reduction of the year. This decline stemmed from reduced food and transportation costs, while housing expenses rose. Despite a 12-month inflation rate of 3.91% in Lima, Peru's central bank anticipates closing 2026 at 2.4%.

Peruvian consumer prices fell by 0.16% in May, according to data from INEI, the nation's statistics agency, marking the year's first decline. This follows a price increase of 0.52% in April.

The decline was primarily driven by reduced costs in food and non-alcoholic beverages, dropping 1.69%, and a 0.19% decrease in transportation prices. However, housing and utility bills saw a significant increase of 1.04%, attributed to adjusted residential electricity rates.

As inflation in Lima settled at 3.91%, above the central bank’s target range, last year's national rate was notably low at 1.5%. The bank anticipates a moderate rate of 2.4% for 2026.