Consumer Prices of Lima Metropolitan area increased by 0.56% in April of this year

The National Institute of Statistics and Informatics (INEI) reported that, in April 2023, the Metropolitan Lima Consumer Price Index increased 0.56%, with an accumulated variation at the fourth month of the year of 2.35% and in the last twelve months (May 2022-April 2023) of 7.97%.

 

In the technical report Variation of the Price Indicators of the Economy, it is specified that, the monthly result was mainly influenced by the increase in prices in Food and Non-alcoholic Beverages (1.44%), Restaurants and Hotels (0.77%), Health (0.51%) and Transportation (0.13%). Likewise, upward prices showed Goods and Miscellaneous Services (0.40%), Alcoholic Beverages, Tobacco and Narcotics (0.39%), Clothing and Footwear (0.30%), Furniture, Home Items and Ordinary Home Conservation (0.24%), Recreation and Culture (0.15%), Education (0.09%) and Communications (0.02%). On the contrary, the prices of Accommodation, Water, Electricity, Gas and Other Fuels (-0.29%) decreased. 

 

The increase in prices in the Food and Nonalcoholic Beverage division is supported by the higher prices observed in other food products (4.1%) such as, coriander (27.2%), grounded rocoto chili (18.0%) and hydrated dressings (6.3%); also, fishes and seafood (3.9%) as Lisa fish (13.5%), Parrot fish (12.3%), mussels (10.9%), horse mackerel (9.8%), sea bass (7.9%) and Bonito fish (3.8%); milk, cheese and eggs (2.4%) where they reported growth in prices of chicken eggs (5.6%) and cow’s fresh cheese (2.5%); fruits (2.3%) as blueberries (55.1%), strawberry (25.5%), common apple (6.8%), white grape (6.6%), Israel apple (6.4%), pineapple (5.6%), silk banana (4.4%), Delicia apple (3.8%) and mango (3.5%). Likewise, meat prices (1.4%) were increased as well as the chicken cuts: wings (3.7%), leg (2.1%), breast (1.4%), eviscerated hen (2.2%), chicken giblets (2.2%), pork chop (1.9%), beef stew meat (1.6%), eviscerated chicken (1.5%), Breaded chicken (1.5%), beef steak (1.3%), and ground beef (1.1%).

 

Also, bread and cereals (0.6%) such as, purple corn (11.3%), salted crackers (2.6%), sliced bread (1.0%), sweet biscuits (0.9%) and whole quinoa (0.9%); the vegetables, legumes including potatoes and other tubers (0.6%) as celery (84.1%), beet (40.0%), leek (18.9%), cauliflower (12.1%), Italian tomato (11.9%), chopped vegetables (11.6%), lettuce (9.6%), corn (7.0%), onion (5.4%) and Macre pumpkin (4.6%); and also, mineral waters, soda, fruit and legume juices (0.6%) as, non-carbonated mineral water (1.7%), soft drinks (0.6%) and non-carbonated table water (0.6%). 

 

In Transportation, the prices of the interprovincial bus fare (5.1%) and passenger transport by air (3.4%) were increased, such as domestic (8.9%) and international (1.9%) airfare. Meanwhile, vehicle fuel prices fell (-1.2%) due to the decline observed in diesel oil (-4.1%), liquefied vehicle oil gas (-3.1%) and gasohol (-1.0%); also, acquisition of vehicles (-0.8%) such as new cars (-0.8%).

 

The increase in Restaurants and Hotels is due to the increase in prices of beverage service in restaurants and similar commercial spaces (0.9%) as natural soft drinks (1.2%), hot drinks (1.1%) and beer served (1.0%); and food service in restaurants and similar commercial spaces (0.8%) such as, grilled meat (1.6%), desserts (1.5%), regional broths and soups (1.3%), Chaufa rice (1.2%), breakfast in restaurants (1.2%), grilled chicken (1.0%), Chifa dishes (1.0%), Ceviche (1.0%) and menu in restaurants (0.7%).

 

In the Health division, the prices of the dental service grew (1.0%), inpatient hospital service (0.8%), such as medical delivery and surgery in clinic (0.8%) and hospital (0.2%); medical services (0.6%) as consultations in gynecology (0.9%), ophthalmology (0.8%), physical medicine and rehabilitation (0.7%); likewise, increased drug product prices (0.3%) as antihypertensive (0.6%), mucolytic expectorants (0.6%), ophthalmic decongestants (0.6%), anti-inflammatory drugs (0.4%), antibiotics (0.4%) and vitamin supplements (0.4%). 

 

On the contrary, downward prices presented the Accommodation, Water, Electricity, Gas and Other Fuels division, explained by the price reduction observed in natural gas consumption (-2.5%) due to the new tariff specifications in force as of April 1 of this year; domestic propane gas (-0.9%) and residential electricity consumption (-0.7%) by the tariff specifications as of April 4 of this year. 

 

In April 2023, of the 586 products that make up the family basket, 408 recorded price increases, 80 decreased and the other 98 products maintained their prices. The products with the highest price increase were celery (84.10%), blueberries (55.14%), beet (39.95%), coriander (27.20%), strawberry (25.53%), leek (18.90%), grounded rocoto chili (17.98%) and Lisa fish (13.55%). Meanwhile, products with downward prices were green peas (-32.43%), lemon (-17.91%), white potatoes (-5.86%), color potatoes (-5.14%), Huayro potatoes (-4.29%), diesel oil (-4.06%), green beans (-3.91%) and liquefied petroleum gas (-3.12%).

 

The increase in prices in Lima Metropolitan area during the month of analysis was mainly influenced by the increase in prices in chicken eggs, strawberry, celery, eviscerated chicken and menu in restaurants, which together contributed 0.244 percentage points to the result of the month; attenuated by the decrease in green peas, lemon, white potatoes, electric rates and new cars.

 

In April 2023, the variation in the Lima Metropolitan Consumer Price Index, without considering food and energy (underlying inflation), grew 0.20%.

 

During the month of analysis, the National Consumer Price Index registered an increase of 0.55% and in the first four months of 2.66%, while the annual variation reached 8.04%. The result for the month of April is mainly supported by the price increase of the divisions: Food and Nonalcoholic Beverages (1.22%), Restaurants and Hotels (0.81%), Health (0.46%), Alcoholic Beverages and Tobacco, (0.46%), Goods and Miscellaneous Services (0.43%), Clothing items and Footwear (0.34%), Furniture, Household Goods (0.34%), Education (0.27%), Recreation and Culture (0.19%), Transportation (0.17%), and Communications (0.01%). On the contrary, Accommodation, Water, Electricity and Gas (-0.36%) decreased.

 

In the fourth month of the year, twenty cities where the Consumer Price Index is calculated showed price increases. The highest variations were observed in the cities of Trujillo (1.31%), Piura (1.18%), Chimbote (1.04%) and Huaraz (0.94%). While six cities reported lower prices, Pucallpa (-0.53%), Puerto Maldonado (-0.27%), Puno (-0.20%), Abancay (-0.18%), Cerro de Pasco (-0.03%) and Moquegua (-0.01%).

 

In April 2023, the Wholesale Price Index at National Level decreased by 0.08% with an accumulated variation of the first four months of 0.61% and the annualized of 4.24%, due to lower prices that presented the imported products (raw soy oil, carbon black, PVC resins, nitrogen based and binary, polyester fibers, truck tires, construction rods, steel plates, diesel oil, lubricating oils, Cyanide not carded cotton and wheat). While, domestic manufactured goods prices rose (sweet biscuits, salty cookies and covered cookies, chicken meat, evaporated milk, fish preserves in grated, fruit nectars, industrial oil, power cables, gasohol, polypropylene films, white beer and waterborne paints) livestock (eggs, sheep cattle, beef cattle and live chicken) and fisheries (Parrot fish, Cachema fish, Cojinova fish, Cabrilla fish, Lisa fish, horse mackerel and hake); however, agricultural product prices (potato, avocado, lemon, carrot, yucca, hard yellow corn, ullucus and mandarin).

 

In the month of analysis, the Price Index of Machinery and Equipment of Lima Metropolitan area decreased 0.05%, reaching an accumulated variation at the fourth month of the year of -0.56% and the annualized one of 5.02%. This result is supported by lower prices of domestic capital goods such as other machinery and equipment, wheelbarrows, stretchers, medical treatment chairs and fishing nets; followed by machinery and equipment for transportation such as moto-taxi, car bodies and springs for automotive vehicle; and machinery and equipment for industry, such as transformers, bakery ovens, electrical panels and shelves. 

 

On the contrary, the prices of agricultural machinery and equipment, especially bird nests increased; likewise the prices of imported capital goods, influencing the greatest positive variation in machinery and equipment for agriculture, tractors and to a lesser extent, other machinery and equipment, including single-phase electrical and various electricity meters. However, prices for machinery and equipment imported decreased such as for transportation, pick-up trucks, road tractor for semi-trailer and oil filters, as well as machinery and equipment for the industry, such as excavators, computers, valves, dump trucks and industrial sewing machines, affected by the change in the exchange rate.

 

Finally, in April 2023, the Price Index of Construction Materials of Lima Metropolitan area decreased by 0.52% with an accumulated variation of 1.19% and the annualized variation of 1.62%. This behavior is supported by price reduction in six of the top ten big components: metal (keys, steel plates LAC and LAF, construction rods, and wavy zinc plates, because of the decline in the dollar); glass, including: Primary glass and tempered glass; tiles and mosaics, such as, Floor and wall coatings bricks (king kong brick, Tambourine and roof bricks);  plastic pipes and fittings (PVC fittings for water and drain, PVC electrical pipes and accessories); electrical supplies, as general purpose and power flexible cables. Conversely, price increases were observed in aggregates (mainly concrete); woods (Tornillo wood, oak and Cachimbo wood), binders (Portland cement type I) and concrete structures (flat fiber and gypsum sheets).