Lima, February 15 (EFE).- Peru reached 27 consecutive years with a single-digit inflation rate, the longest period of monetary stability in the country, the Central Reserve Bank (BCRP) reported this Thursday in a statement.
The organization detailed that in February 1997, annualized inflation reached the rate of 9.4%, which “left behind a long period in which prices increased at annual rates of two, three and even four digits during the hyperinflation” that hit the country at the end of the eighties of the last century.
He recalled that between August 1987 and August 1990, during the first government of Alan García and the beginning of Alberto Fujimori’s administration, the accumulated inflation rate was 3.5 million percent.
“In the last two decades, average annual inflation has decreased to a figure around 3 percent,” highlighted the issuing entity.
The BCRP maintained that this improvement was achieved due to “an important transformation in monetary policy,” since a reform applied in the early 1990s gave it constitutional autonomy, which allowed it to focus its objective on monetary stability.
With the new millennium, he added, “monetary policy underwent a modernization that puts it on par with the main central banks in the world” and in 2002 the Explicit Inflation Targeting Scheme (MEI) was implemented, which since 2007 has set a target range between 1 and 3% annual inflation.
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The bank emphasized that this “allows anchoring the inflationary expectations of economic agents and reducing dollarization” of the national economy.
He also maintained that “although inflation has sometimes exceeded the target range due to supply shocks, such as increased prices of food, fuel or exchange rate depreciation,” it has implemented preventive measures to prevent these temporary factors. are reflected in inflationary expectations.
In that sense, these have been located 77% of the time within the target range in the last 22 years and the dollarization of credit, which is considered one of the vulnerabilities of the Peruvian economy, was reduced from more than 80% at the beginning. from 2000 to 23% in 2023.
The BCRP added that, since the implementation of the MEI, Peru’s average annual inflation rate has been 3.1%, “the lowest among the main Latin American countries, as well as among those that follow the same scheme in the region”.
While the country closed 2023 with an annual inflation of 3.41%, the central bank detailed that between 1921 and 1940 there was a continuous period of 20 years of single-digit inflation and that there was also another 9 years between 1950 and 1958.
By: EFE
The post Peru reached 27 consecutive years of single-digit inflation, reports the central bank appeared first on Minuto30.
2024-02-16 04:26:56
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