Consumer prices of Lima Metropolitan area increased by 0.32% in May of 2023

The National Institute of Statistics and Informatics (INEI) reported that, during the month of May 2023, the Consumer Price Index of Lima Metropolitan area increased 0.32%, with an accumulated variation at the fifth month of the year of 2.67% and in the last twelve months (June 2022-May 2023) of 7.89%.

In the technical report Variation of the Price Indicators of the Economy, is specified that, the monthly result was mainly influenced by the increase registered in the following consumption divisions: Food and Non-alcoholic Beverages (0.98%), Restaurants and Hotels (0.69%), Goods and Services (0.38%), Alcoholic Beverages, Tobacco and Narcotics (0.38%), Clothing and Footwear (0.38%), Health (0.24%) Furniture, Home Items and Ordinary Home Conservation (0.19%), Recreation and Culture (0.13%) and Education (0.07%). On the contrary, the prices of Accommodation, Water, Electricity, Gas and Other Fuels (-0.75%) Transportation (0.31%) and Communications (0.01%) decreased.

The increase in prices in the Food and Nonalcoholic Beverage division is supported by the prices increase registered in fishes and seafood (6.6%) such as mackerel (15.5%), Bonito fish (14.9%), horse mackerel (13.3%), sea bass (5.9%), parrot fish (4.2%) and hake (1.9%) due to abnormal strong swells that caused a less income of these products to the markets; likewise the prices of other food products (5.3%) increased such as, coriander (29.1%), grounded Peruvian yellow pepper (13.9%), basil (13.0%), ground garlic (12.2%), hydrated dressings (7.6%) and ground special Panca red pepper (6.4%); milk, cheeses and eggs (2.0%) such as cow’s fresh cheese (3.6%), chicken eggs (3.2%) and evaporated milk (1.3%); also vegetables and legumes including potato and other tubers (1.8%) such as green onions (66.6%), tomato (37.2%), spinach (21.1%), lettuce (20.7%), red onion (17.1%), leek (17.0%), celery (13.3%), bell pepper (11.8%), chopped veggies (10.7%), beet (9.9%), broccoli (8.9%) and corn (3.9%); and sugar, jam, honey, chocolate and candies of sugar (1.7%) such as brown (3.4%) and white (2.3%) sugar.

Likewise, it increased the prices of bread and cereals (0.6%) such as, dried corn (3.8%), packet rice (2.5%), salted crackers (1.7%), cake (1.3%), savory desserts (1.3%), packaged oatmeal (1.0%), rice in bulk (0.8%) and dried noodles of long pasta (0.5%); mineral waters, soft drinks, fruits and vegetable juices (0.4%) such as sodas (0.6%), non-carbonated mineral water (0.5%) and non-carbonated table water (0.3%); coffee, tea and cacao (0.2%) from which it increased the cocoa powder (1.1%) and ground toasted coffee (0.8%); and the fruits (0.0% such as, cucumber (21.7%), regular apple (12.7%), Israel apple (11.4%), passion fruit (10.0%), mango 5.0%) and papaya (2.7%); nevertheless, the food products that showed decrease in prices were the lemon (-9.1%), tangerine (-7.5%), blueberries (-6.4%), strong avocado (-5.5%) and passion fruit (-2.0%). On the other hand, it decreased the prices of meat (-0.8%) such as chicken gutted (-4.0%), chicken cuts: wings (-1.2%) and legs (-0.1%).

In the Restaurants and Hotels division grew the prices of food service in restaurants and similar commercial spaces (0.7%) such as, grilled meat (1.1%), grilled chicken (1.0%), Creole and regional plates (1.0%), Chaufa rice (1.0%), Ceviche (0.9%), breakfast in restaurants (0.8%), menu in restaurants (0.7%) and sandwiches (0.7%); beverage service in restaurants and similar commercial spaces (0.5%) such as hot beverages (1.0%), fruit juice (0.7%) and served beer (0.2%).

The decrease of prices the Accommodation, Water, Electricity, Gas and Other Fuels division showed was explained by the decrease prices reported in the residential electricity consumption (-2.2%) due to the new tariff specifications in force as of May 1 of 2023; domestic gas (-0.9%); and the rental housing (-0.4%) due to the lower prices of rental department in building (-0.5%).

The reduction that showed Transportation division was due to the lowest prices observed in the inter-provincial bus tickets (-6.5%), fuel for vehicles (-2.7%) such as Diesel oil (-6.9%) and gasohol (-2.8%); transportation of passengers by air (-1.0%) such as domestic air ticket (-5.6%) and the purchasing vehicles (-0.5%) such as new automobiles (-0.5%).

In Goods and Different Services increased the prices in hairdressings salons and establishments of personal care (0.6%) such as hair dyes (0.8%), haircuts for men (0.7%), esthetic care of hands and feet (0.6%) and haircuts for women (0.6%). As well as, other devices, articles and products for personal care (0.4%) such as toiletries for babies (1.0%), toilet soap (0.8%), shampoo (0.7%), cosmetics (0.6%), electric shavers (0.6%), toothbrush (0.5%), toilet paper (0.3%) and disposable diapers (0.2%).

During the month of May of 2023, from the 586 products that compose the family basket, 402 registered increase of prices, 96 decrease process and 88 products keep their prices. The products with greater increase of prices were green onion (66.61%), tomato (37.23%), coriander (29.09%), cucumber (21.71%), spinach (21.08%), lettuce (20.69%) red onion (17.06%) and leek (17.01%). While, downward prices were registered in the following products green peas (-32.89%), carrot (-10.09%), lemon (-9.05%), white potato (-8.17%), tangerine (-7.53%), Diesel oil (-6.92%), ulluco (-6.82%) and Huayro potato (-6.72%).

The increase of prices in Lima Metropolitan area during the month under analysis was influenced, mainly by the increase of prices in foods such as tomato, red onion, Bonito fish, chicken eggs and menu in restaurants that together they contributed with 0.241 percentage points to the month result. This situation was attenuated by the decrease in the prices of chicken gutted, green peas, white potato, electric new tariff and gasohol.

During the fifth month of 2023, the variation of the Consumer Price Index of Lima Metropolitan area, without considering foods and energy (underlying inflation) increased by 0.08%.

During the month of May of the current year, the Consumer Price Index at National Level increased 0.31%, reaching an accumulated variation to the fifth month of the year of 2.98% and an annual variation of 7.99%. This result is based mainly in the increase observed in the Food and Nonalcoholic Beverage divisions (0.80%), Restaurants and Hotels (0.65%), Alcoholic Beverages and Tobacco (0.41%), Goods and Different Services (0.38%), Clothing items and Footwear (0.35%), Health (0.27%), Furniture, Household equipment (0.25%), Recreation and Culture (0.19%), Education (0.06%) and Communications (0.01%). Meanwhile, Transportation (-0.21%) and Accommodation, Water, Electricity and Gas (-0.65%) divisions, decrease their prices.

During the month under analysis, twenty-one out of the twenty-six cities where the Consumer Price Index reported an increase of prices. The cities that registered the highest variations were Chimbote (0.77%), Chiclayo (0.68%), Moyobamba (0.67%), Trujillo 0.57%, Huánuco 0.56%, Cajamarca 0.52% and Pucallpa 0.51%. Meanwhile, the cities with downward prices were Iquitos (-0.18%), Puerto Maldonado (-0.13%), Cusco (-0.13%), Moquegua (-0.10%) and Ica (-0.03%).

During May of 2023, the Wholesale Price Index at National Level decreased by 0.84% with an accumulated variation of the first five months of -0.24% and an annual variation of 1.65%, due to the lower prices that showed the manufactured national products (petroleum diesel, gasohol, petroleum liquefied gas, power cables, construction rods, cotton yarns, chicken meat, sweet and salty cookies and refined soybean) and agriculture (green peas, potato, lemon, tangerine, avocado, yucca, threads of cotton yarn, chicken meat, cookies: sweet and salty and refined soy oil) agricultural (green peas, potato, lemon, mandarin, avocado, carrot, banana, yucca, hard yellow corn and sweet potato). Meanwhile, it increased the prices of livestock products (eggs, livestock: sheep and beef cattle and live chicken) and fishing (mackerel, horse mackerel, Cachema fish, Cabrilla fish, Bonito fish, Lisa fish and Cojinova). Likewise, it decreased the prices of imported goods (nitrogen fertilizers, soy cakes, Diesel oil, lubricating oils, Steel sheets, crude soybean oil, cyanide, loaders and front bulldozers, construction rods, transportation vehicles, carbon black, mobile phone; hard yellow corn, cotton not carded and wheat).

In the fifth month of the year, the Price Index of Machinery and Equipment of Lima Metropolitan area decreased by 1.36% with an accumulated variation of -1.92% and annualized variation of 1.40%. This behavior was influenced by the lower prices in machinery and equipment for industry: gas cans, electrical transformers, electric boards and shelves; followed by machinery and equipment for transportation: car bodies, springs for automotive vehicle and moto-taxi; and for other machinery and equipment: fishing nets and wheelbarrows. Nevertheless, it increased the prices of the goods of machinery and agricultural equipment, mainly nests for birds. In addition, it decreased the prices of capital goods of imported origin, due among other things, to the decrease of exchange rate. The lower rate was observed in the machinery and transportation equipment: motors for ships, road tractor for semi-trailer and spares (oil filters); the machinery and the equipment for industry: wheel loaders, industrial sewing machines and computers; and other machinery and equipment: electro medical equipment and single electricity meters. While, it increased the prices of machinery and agricultural equipment, especially tractors.

Finally, during the month of May of 2023, the Price Index of Construction Materials of Lima Metropolitan area decreased by 0.54% with an accumulated variation of 0.64% and annualized variation of 0.32%. This behavior is supported by the reduction of prices of seven of its ten components: metallic (hot rolled iron tube, zinc plated corrugated sheets, steel sheets, construction rods and nails); bricks (tambourine, for roof and king kong); glasses (basically tempered glasses); tiles and mosaic (floor and wall coverings); and woods (chipboard, Capirona wood, Tornillo wood and oak). On the other hand, in lower measure, it decreased the prices in aggregates (sand and concrete) and binders (Portland cement type I). Meanwhile, it increased the prices of electrical supplies (mainly in flexible cords of general use); concrete structures (gypsum wallboards and fiber-corrugated sheets); tubes and plastic accessories.