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Peru Inflation Rebounds in February With Food and Water Costs Lifting Annual Rate to 2.21%

The rise reflects sharp increases in a few volatile foods plus a new water tariff, signaling cost shocks rather than broad inflation.

Overview

  • Consumer prices in Lima rose 0.69% in February, the largest monthly gain since March 2025, taking the 12‑month rate to 2.21%, according to INEI.
  • Just four components—green peas, eviscerated chicken, eggs, and the household water tariff—accounted for 0.604 percentage points of the 0.69% monthly increase, with water up 10.3% from February 1.
  • Fresh food spikes were pronounced: green peas roughly doubled (+106%), strawberries rose about 32%, eggs gained ~18%, and chicken climbed 8–9%; Midagri reports retail chicken at S/12.41/kg late February versus S/11.24 late January.
  • Some declines tempered the headline figure as residential electricity fell 2.85% and mobile phone consumption dropped around 3%, with the communications division down 1.10%.
  • Price increases were recorded in all cities, led by Puno (0.93%), Chiclayo (0.81%) and Cajamarca (0.79%); the annual rate remains within the BCR’s 1%–3% target and core inflation registered 0.36% for the month.