Peru’s inflationary expectations remain anchored since the implementation in 2002 of a mechanism named “Explicit Inflation Targets”, which sets the target of annual average variation of prices between 1% and 3%, reported today the Central Reserve Bank of Peru (BCR).
Since January 2002, when the aforementioned scheme was implemented, inflation expectations of economic agents have been within BCR’s target range for 93% of the time.
This means expectations remained within the target range in 12 out of the past 13 years.
“This shows BCR’s monetary policy has managed to anchor inflationary expectations,” affirmed the issuing entity.
According to BCR, when inflation was not within the target range, it returned back to normal once temporary factors affecting it disappeared.
Finally, after the last 12 months inflation returned to its target range in February this year, as it averaged 2.77%, it the issuing entity stated.
(END) JJN/JJN/RMB/MVB
Published: 3/4/2015