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Peru's consumer prices fall for second month in a row in October



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LIMA, Nov 1 (Reuters) -Peruvian consumer prices fell month-on-month inOctober for the second month in a row, data released by national statistics agency INEI showed on Friday.

The 0.09% drop in consumer prices surprised analysts, who had expected a 0.02% rise according to a Reuters poll, and continued the 0.24% decline registered in September.

October's deflation was driven by dropping prices of food and non-alcoholic beverages that fell by 0.64%, data from INEI showed.

Meanwhile, prices of goods and services rose by 0.18% compared with the prior month, while restaurants and hotels increased 0.17%.

Last month Peru's central bank kept its interest rate at 5.25%, after two consecutive cuts, cautioning over transitory inflation effects in the final months of the year. The decision defied analysts' expectations of a 25-basis-point cut.

Annual inflation in the world's third-largest copper producer came in at 2.01% in October, and so far this year prices have climbed 1.76%, according to INEI.

The Andean nation has shown signs of recovery in recent months after slipping into a recession in 2023 due to adverse climate effects, social unrest and lower investment. The central bank expects Peru's economy to grow 3.1% this year.



Reporting by Marco Aquino and Natalia Siniawski; Writing by Aida Pelaez-Fernandez; editing by Jason Neely and Brendan O'Boyle

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