Perus annual inflation to soar over 8.8% as blockades hit food prices -minister

Peru's annual inflation to soar over 8.8% as blockades hit food prices -minister

LIMA (Reuters) – Inflation in Peru will likely end January at a rate between 8.8% and 8.9% on an annual basis, the countrys minister of economy said on Monday, as protests and road blockades push up food prices.

“The greatest impact of the protests is being generated in the issue of prices,” Minister of Economy Alex Contreras told reporters while leaving the government palace in Lima. “It is a temporary increase. We estimate that (annual) inflation could close in January between 8.8% and 8.9% depending on how communications are restored.”

Contreras said he expects the impact to be temporary due to economic stimulus measures the government is proposing for regions roiled by protests.

Peru, the worlds no. 2 copper producer, has been embroiled in political turmoil since December, with anti-government protests blocking roads and clashes with security forces leading to the death dozens of people.

In December, Peru registered monthly inflation at 0.79%, ending the year at 8.46%, the highest annual measurement in the last 26 years.

Despite the high rate seen this month, the countrys central bank expects a decreasing trend in year-on-year inflation in March, and a return to inflation target range of between 1% and 3% by the end of 2023.

(Reporting by Marco Aquino; Editing by Leslie Adler)

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