Consumer prices of Lima Metropolitan area increased by 1.25% in March of this year

The National Institute of Statistics and Informatics (INEI) informed that during the month of March of 2023, the Consumer Price Index of Lima Metropolitan area increased by 1.25%, with an accumulated variation of 1.78% at the third month of the year and of 8.40% of the last twelve months (Abril 2022-March 2023).

In the technical report Variation Price Indicators of the Economy, the monthly result was influenced, mainly by the increase of prices observed in the consumer divisions: Education (4.79%), Foods, Non-alcoholic Beverages (2.79%), Restaurants, and Hotels (0.72%). To a lesser extent, it increased the prices of Alcoholic Beverages, Tobacco and Narcotics (0.50%), Goods and Miscellaneous Services (0.41%), Clothing items and Footwear (0.41%), Recreation and Culture (0.27%), Health (0.26%), Furniture, Household Items and Routine Household Maintenance (0.20%) and Communications (0.01%). On the other hand, it decreased the prices of the divisions of Transportation (-0.12%) and Accommodation, Water, Electricity, Gas and Other Fuels (-0.08%).

The increase on Education is based in the greater prices observed in the high-school education (9.2%) due to the increase of the tuition of the non-state high-school education (10.4%), expense in tuition process of non-state high-school (1.3%). Likewise, preschool and elementary education prices increased (8.8%), due to the increase in the non-state early childhood (10.3%), elementary (10.1%) education expense in tuition process of non-state early childhood (2.2%) and elementary (1.5%) education. In the same way, it increased the price of post-high-school, non-tertiary education (2.2%) such as the tuition of technical-productive education (2.3%) and the expense in tuition process non-state CETPRO (1.5%). Tertiary- level education also increased (2.0%) such as the expense in tuition process in non-state superior institute (4.5%), non-state under-graduate degree university (0.5%), tuition of non-state under-graduate degree university (2.4%) and of non-state superior institute (1.8%).

In Foods and Non-alcoholic Beverages it increased the prices of the meat (8.2%) such as chicken gutted (16.0%), chicken cuts: wings (14.5%), leg (10.3%) and breast (9.7%); chicken giblets (10.2%), Breaded chicken (9.8%), hen gutted (8.3%); ground beef (2.2%) and meat for beef stew (1.8%). Also, increased the prices of fruits, such as strawberry (51.8%), lemon (18.4%), mango (17.1%), Silk banana (12.7%), Inguiri Green banana (7.0%), cucumber (6.3%) and orange for juice (4.0%). Likewise, it increased the prices of milk, eggs and cheese (4.4%) where it outstands the increase in the Price of chicken eggs (14.1%). In the same way, it increased the prices of fishes and seafood (1.7%) such as Parrot fish (30.2%), horse mackerel (4.3%) and Bonito fish, purple maize (32.2%), dried maize (6.6%), rice packaged (1.6%), salty cookies (1.6%), salty cakes (1.0%) and long pasta noodles (0.9%); mineral water, fruit and vegetable soft drinks and juices (0.7%), such as mineral water without gas (1.4%), carbonated beverages (0.7%) and non-carbonated table water (0.6%); and sugar, jam, honey, chocolate and sugar desserts (0.4%) such as personal cream (1.7%) and ice (1.5%) ice-cream. Meanwhile it decreased the prices of vegetables, legumes including potato and other tubers (-2.5%) such as Huayro potato (-15.0%), yellow (-11.4%) and white (-11.1%), color (-9.3%) potato, yellow chili (-10.9%), Green pea (-8.5%), Italian tomato (-5.9%) and Green beans (-5.2%).

In the Restaurants and Hotels division the prices of foods in restaurants and similar locations (0.8%) increased the prices of food service in restaurants and similar establishments such as grilled chicken (1.2%), seafood dishes (1,2%), grilled meats (1.1%), chicken stock (0.9%), Chaufa rice (0.9%), Ceviche (0.8%), sandwiches (0.8%), Menu in restaurants (0.7%) Creole and Regional dishes (0.7%); and beverage service in restaurants and similar establishments (0.6%) such as natural juice soft drinks (0.8%), blended fruits juice (0.6%), beer served (0.6%) and sodas (0.6%).

The reduction of the prices in Transportation is based in the decrease of transportation of passengers by air (-4.4%) due to the drop observed in domestic (-6.8%) and international (-3.7%) air ticket; in inter-province bus (-3.3%); fuels for vehicles (-1.8%) such as Diesel oil (-2.6%), gasohol (-1.9%) and liquefied petroleum gas (-0.2%). While, it increased the prices of mobility to study centers (10.6%).

During the month of March of 2023, from the 586 products that are part of the family basket, 415 reported an increase of price, 103 decreased and 68 did not showed variation. The products with the greater increase were strawberry (51.81%), celery (50.43%), purple corn (32.24%), Parrotfish (30.24%), leek (25.06%), lettuce (19.05%), lemon (18.40%) and mango (17.12%). Meanwhile, the products with the prices decreased were Huayro potato (-14.98%), white grape (-14.96%), grounded red hot pepper (-11.77%), yellow potato (-11.39%), white potato (-11.07%), yellow pepper (-10.94%), strong avocado (-10.48%) and Choros mussels (-10.01%).

The price increase in Lima Metropolitan area during the third month of the year was influenced, mainly by the school and non-state university tuition, some foods such as gutted chicken, chicken eggs and strawberry, that together contributed with 0.868 percentage points to the monthly result; attenuated by the decrease of prices in tubers such as white and yellow potato, green peas, strong avocado and international air ticket.

During the month of March of 2023, the variation of the Consumer Price Index in Lima Metropolitan area, without considering foods and energy (underlying inflation) increased by 0.88%.

During the month under analysis, the Consumer Price Index at national level reported an increase of 1.19% and during the three first months reached to 2.10%, meanwhile the annual variation reached 8.67%. This result was explained, mainly by the increase of Price of the divisions of Education (4.76%), Foods and Non-Alcoholic Beverages (2.32%), Restaurants and Hotels (0.90%), Goods and Miscellaneous Services (0.52%), Clothing Items and Footwear (0.52%), Furniture, Household Items and Routine Household Maintenance (0.37%), Alcoholic Beverages and Tobacco (0,34%), Health (0,31%), Recreation and Culture (0,28%) and Communications (0,01%). On the other hand, it decreased the prices of Accommodation, Water, Electricity and Gas (-0.16%) and Transportation (-0.02%).

During the third month of the year, twenty of the twenty-six cities where the Consumer Price Index is calculated showed increase in prices while six showed results downwards. The highest variations were observed in the cities if the north due to heavy rains: Piura (2.59%), Trujillo (2.39%), Chiclayo (2.31%), Cajamarca (2.23%) and Tumbes (1.98%). While, the cities placed in the south of the country registered negative results: Puerto Maldonado (-5.67%), Cusco (-0.83%), Puno (-0.59%), Abancay (-0.55%) and Huancavelica (-0.29%).

During March of 2023 the Wholesale Price Index at National Level decreased by 0.51% with an accumulated variation of 0.69% and an annual variation of 5.68%. This behavior responds to the lower prices observed in the manufactured products such as fuels (Diesel petroleum, gasohol, GLP), PVC pipes, cold-drawn wires, cotton yarn fibers, construction rods, short pasta noodles, vegetable shortening, metal containers, brown sugar. Also, decreased the prices of the agricultural products (potato, grape, avocado, tomato, hard yellow corn and paddy rice); that was counterbalanced by the increase of prices of livestock goods (live birds: chicken and hen, eggs, livestock: swine, beef cattle and ovine cattle); and fishing goods (Parrotfish, Boquichico fish, trout, horse mackerel and Cojinova fish). Likewise, it was registered a downturn prices the manufactured imported goods (lubricating greases, pneumatics for truck, PVC resins, nitrogen fertilizers, lubricating oils, Diesel petroleum, crude soy oil, Steel sheets, cyanide, chargers and frontal bulldozers and vehicles for transportation); and the agricultural (cotton non-carded, wheat, apples and hard yellow corn).

During the month under analysis, the Price Index of Machinery and Equipment of Lima Metropolitan area decreased 1.18%, reaching an accumulated variation for the first quarter of -0.52% and annualized of 4.98%. This result was based in the reduction of prices of capital goods both of national as well as imported origin. In the machinery and equipment for transportation (car bodies, moto-taxi and springs for automotive vehicle); in the machinery and equipment for industry (power transformers, ovens for bakery and electric boards) and other machinery and equipment (lift trucks and fishing net). In the imported goods, the lowest variation was observed in machinery and equipment for transportation (motors for boat, pick-up trucks and vehicles for goods transportation); machinery and equipment for the industry (wheel loaders, industrial sewing machines, computers and dump truck) and in the machinery and equipment for agriculture (trucks and wheel loaders).

Finally, during the third month of the year the Price Index of Construction Materials of Lima Metropolitan area decreased by 0.30% with an accumulated variation of 1.72% and annualized by 2.93%. This behavior was explain by the reduction of prices in six of its components: glass (laminated glasses and primary glasses); metallic (hot Rolling Steel pipes, galvanized plates, iron plates: LAC and LAF, nails and construction rods); electric suppliers (cables for energy, and cables for fixed installations and flexible cables for general use); and aggregates (mainly cement); also, woods (agglomerated panels, Capirona, oak and Cachimbo); and bricks (woven brick, tambourine and king kong brick). On the other hand, it increased the prices of blinders (lime and Portland cement type I) and structures of concrete (plates composed by fibers and flat sheets of fiber).