The housing and utilities category drove August’s price movement, rising 0.87% as residential electricity tariffs increased 3.99% following Osinergmin’s tariff update effective August 4. The adjustment reflected higher generation, transmission and distribution costs linked to producer price indices and wholesale inflation. Transport costs added pressure with a 0.28% monthly increase, as diesel prices climbed 11.5% and gasohol rose 8.4% during the month. Fuel and lubricants for vehicles collectively increased 7.33%. The transport division now shows 14.8% year-on-year inflation, with transport services specifically up 17%. Diesel prices stand nearly 60% above year-ago levels, while gasohol grades show 30-40% increases.
Food prices provided offsetting relief, with the food and non-alcoholic beverages category declining 0.66% in August. Chicken prices fell 8.37% as the market normalized following avian flu disruptions in prior months. Blueberries dropped 20.29%, mango declined 10.31%, and papaya decreased 8.49%. However, fish prices rose 5% overall, with bonito up 13.67%, reflecting reduced availability linked to El Niño conditions. Yellow pepper increased 28.57%, Chinese onion rose 13.87%, and passion fruit advanced 13.13%.
Pamela Bernabé of Macroconsult noted the monthly result reflects compensation between components, with chicken price normalization offset by resumed fuel increases. Paola Herrera of Instituto Peruano de Economía highlighted that the fuel category alone explained 42% of total inflation, with transport registering six consecutive months of double-digit annual inflation. Of the 586 products in the consumer basket, 305 increased in price during August, 127 decreased, and 154 remained unchanged. Core inflation excluding food and energy registered just 0.02% in August.
This article was curated and published as part of our South American energy market coverage.
