This figure released by the INEI is the lowest of the year as it means leaving behind the 2% range it had been at in recent months.

Peru's Consumer Price Index (CPI) fell by more than two-tenths of a percentage point in September compared to August, to stand at 1.78% year-on-year, the National Institute of Statistics and Informatics (INEI) of Peru reported on Tuesday.

This figure is the lowest of the year, as it means leaving behind the 2% range it had been in in recent months and has fallen to the lowest level since 2020, when it was also below 2%. In addition, inflation has now been on the decline for three months, after a slight rebound in June.

On a monthly basis, the rate has remained at 0.24%, as it did in July, after a slight rise to 0.28% in August. The cumulative index has now climbed to 1.86%.

The monthly result is mainly due to the price reduction observed in the food and non-alcoholic beverages (-0.97%) and Transport (-0.40%) divisions.

On the other hand, rising prices were observed in various goods and services (0.18%), restaurants and hotels (0.16%), furniture, household items and ordinary household maintenance (0.11%), recreation and culture (0.04%), accommodation, water, electricity, gas and other fuels (0.03%), clothing and footwear (0.02%), health (0.02%) and communications (0.01%). Meanwhile, the education division did not register any variation.

In this context, the Central Reserve Bank of Peru agreed to cut interest rates by 25 basis points at its last monetary policy meeting, held on September 12. The entity will make a decision again on October 10.