► Peru's 2019 inflation within target range

(Andina) Peru's annual inflation rate was 0.2% in December and 1.9% in the year 2019, within the Central Reserve Bank's target range (1-3%), the issuing entity has reported.

► PERU Non Traditional exports up 7.6% in Nov 2019 

In December 2019, the price rises with the highest contribution to inflation were observed in urban fares (1.1%), national transportation (24.1%), chicken meat (1.9%), and tangerines (9.7%).

On the other hand, the price decreases —which showed the greatest negative contributions to inflation— were those of fish (-2.6%) and fresh fruits (-3.8%).

► PERU Country risk at 107 basis points

Furthermore, inflation —excluding food and energy— showed a monthly rate of 0.34% as a result of the evolution of goods (0.03%) and services (0.52%), registering a variation of 2.3% in 2019.

Inflation expectations within target range

Economic agents' inflation expectations for 2020 and for 2021 remain within the target range of 1–3%, according to the BCR Survey on Macroeconomic Expectations conducted in December 2019.

► Peru exports to Canada total US$2.321 billion in Jan-Nov 2019, 153%

Inflation expectations for this year are between 2.2% and 2.4%, while the inflation rates expected for 2021 remain between 2.3% and 2.5%.

► Peruvian Country risk at 107 basis points

(Andina) In the week of December 31-January 8, Peru's country risk indicator —measured by the EMBIG Peru spread— remained at 107 bps, the Central Reserve Bank has reported.

► Mining investment to continue increasing in 2020

However, in the same period, the EMBIG LatinAmerica spread rose 3 bps to 349 bps within a context of geopolitical tensions between the United States and Iran.

Interbank interest rate

On January 8, the interbank interest rate in Peruvian Soles showed an annual rate of 2.25% and this rate in U.S. Dollars registered 1.75%.

On the same date, the 90-day corporate prime rate —the interest rate charged by commercial banks to lower risk businesses— in Soles was 3.29%, while the prime rate in Dollars recorded 2.69%.

► Peru exports to Canada total US$2.321 billion in Jan-Nov 2019, up 153%

Moreover, the interest rate on mortgage loans in Soles stood at 7.9% percent, whereas this rate on loans in Dollars was 6.9%.