Peru Consumer Prices Fall 0.16% in May, Annual Inflation Slows to 3.91%

Peru’s consumer prices declined 0.16% in May, the first monthly drop this year, as annual inflation eased to 3.91% from 4.01% in April, the national statistics agency INEI reported on June 1. The slowdown was driven by lower food and transport costs. Food and non-alcoholic beverage prices, the largest component, fell 1.69%, led by cheaper vegetables, chicken, sugar, and seafood. Transport prices dipped 0.19%. However, housing and utilities costs rose 1.04% due to adjustments in residential electricity tariffs. Lima’s consumer price index, the benchmark for Peru, rose 3.56% year-to-date through May, remaining above the central bank’s 1%-3% target range. Peru recorded 1.5% inflation in 2025, one of the region’s lowest, and the central bank forecasts a 2.4% rate by end-2026.