Peru consumer prices record sharpest decline in almost a year in August

Peruvian monthly consumer price inflation fell 0.29% in August for the Lima metropolitan area, according to data published on Monday by national statistics agency INEI.

Consumer prices in the world's third largest supplier of copper recorded in August the sharpest monthly decline since September last year, and compared with a 0.23% increase in July.

Peru saw the biggest decrease in the cost of food and non-alcoholic beverages, down 1.05%, amid lower fish prices; followed by housing, water, electricity, gas, and other fuels which declined 0.94% due to an adjustment in residential electricity rates, INEI said in a statement.

Inflation in the 12 months through August landed at 1.11% for the Lima metropolitan area - Peru's key benchmark figure - heading closer to the lower edge of the central bank's target range of 1% to 3%.

The annual inflation figure was the lowest in seven years, since August 2018, but it is expected to tick up as the central bank forecasts the rate to stand around 1.8% by the end of 2025.