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Peru Lima CPI Inflation -0.32% m-o-m (consensus 0.18%) in Oct-23

- CPI inflation in Lima, Peru declined by 0.32% month-on-month in October 2023, causing the annual rate to slow by 0.7pp to 4.3% y-o-y.
- The current inflation rate is below the one-year average and indicates surprisingly subdued inflationary pressures.

Peru GDP Growth -0.63% y-o-y in Aug-23

- Peru's GDP growth contracted by 0.63% year-on-year in August 2023, marking a slight improvement from the previous month's 1.3% decline.
- The ongoing negative growth is only the least bad since June 2023, so there is still a lot of work to do to recover from recent economic challenges.

Central Reserve Bank of Peru: Oct-23

• The Central Reserve Bank of Peru has strategically reduced the reference interest rate to 7.25%, in sync with external economist expectations, addressing ongoing inflationary pressures.
• While global and domestic inflation rates are showing a decline, the bank remains vigilant, considering potential risks from climatic factors, global economic moderation, and unforeseen external shocks.
• The bank’s monetary stance and revised interest rates for currency operations emphasize its commitment to economic stability, inflation targeting, and proactive monetary management.

Peru unemployment rate 6.6% in Aug-23

- The unemployment rate in Peru increased to 6.6% in August 2023, reaching its highest level since May 2023, indicating persistent labor market challenges.
- Despite being below the one-year and long-run averages, the elevated unemployment rate suggests the need for sustained efforts to improve labor market conditions and address potential structural issues.