Consumer prices of Lima Metropolitan area decreased by 0.15% in June of 2023

The National Institute of Statistics and Informatics (INEI) informed that in June of 2023, the Consumer Price Index of Lima Metropolitan area was reduced by 0.15% with an accumulated variation at the sixth month of the year of 2.52% and in the last twelve months(July 2022-June 2023) of 6.46%.

In the technical report Variation of the Price Indicators of the Economy, is explained by, mainly, by the decrease of prices registered in the consumption divisions: Foods and Non-alcoholic Beverages (-1.20%), Transportation (-0.28%), Accommodation, Water, Electricity and Gas(-0.13%) and Communications (-0.02%). On the other hand, it increased the prices of Restaurants and Hotels (0.72%), Various Goods and Services (0.40%), Clothing Items and Footwear (0.34%), Alcoholic Beverages, Tobacco and Narcotic Drugs (0.33%), Recreation and Culture (0.31%), Health (0.25%), Education and Furniture, Household Items and Regular Maintenance of Household (0.15% in each case).

The reduction of prices of Foods and Non-alcoholic Beverages was due to the lower prices observed in meat (-7.4%) such as, eviscerated chicken (-16.5%), chicken cuts: wings (-12.7%), breast (-9.0%) and leg (-9.0%); Breaded chicken (-7.6%); chicken giblets (-6.7%) and eviscerated hen (-1.2%). Likewise, other food products (-3.8%) such as coriander (-34.3%), hydrated dressings (-5.7%), ground Panca red pepper (-5.0%), ground yellow pepper (-4.1%) and ground garlic (-3.7%). In oils and fats (-1.0%) decreased the packaged vegetal oil (-2.4%); in milk, cheese and eggs (-0.5%) decrease the price of hen eggs (-2.9%); and among vegetable, legumes including potato and other tubers (-0.1%) it reduced the prices of celery (-18.1%), beet (-15.5%), corn (-14.6%), lettuce (-11.6%), sweet pepper (-11.6%), fava bean (-8.8%), carrot (-8.2%), yucca (-7.4%), yellow potato (-7.2%), Huayro potato (-7.2%), white potato (-6.8%), colored potato (-5.4%), yellow sweet potato (-3.8%) and tomato (-3.6%).

In Transportation decreased the prices of Fuels for vehicles (-3.8%) such as vehicular liquefied petroleum gas (-8.5%), Diesel fuel (-5.2%) and gasohol (-3.6%); ticket in interprovincial omnibus (-1.8%) and acquisition of vehicles (-0.7%) such as new automobiles (-0.7%). Meanwhile, it increased the prices of vehicular natural gas (1.5%) and transportation of passengers by air (0.6%) such as the domestic airline ticket (4.3%).

The lower prices in Accommodation, Water, Electricity, Gas and Other Fuels is based in the lower prices of domestic gas (-0.8%); consumption of residential electricity (-0.4%) due to the new tariff specifications in force as of June 4; and rented properties (-0.1%) such as the rent of department in building (-0.2%). Meanwhile, the price of the consumption of residential natural gas (3.4%) increased.

The increase that registered the division Restaurants and Hotels was due to the increase of prices of beverage service in restaurants and similar premises (0.8%) such as hot beverages (1.6%), liquefied fruit juice (1.3%), natural soft drinks (0.6%) and beer served (0.4%). Also, food service in restaurants and similar premises (0.7%) such as Breaded chicken (1.9%), breakfast in restaurants (1.8%), desserts (1.1%), Creole dishes (1.0%), chicken broth (0.8%), menu in restaurants (0.7%), grilled chicken (0.6%) and sandwiches (0.5%).

In Goods and Different Services the prices of hair salons and personal care establishments increased (0.6%) as hair color (0.8%), men's haircut (0.8%) and female (0.7%); as well as, aesthetic hand and foot care (0.6%); also, other appliances, personal care items and products (0.5%) as a bath soap (1,4%), baby toiletries (1.2%), shampoo (0,9%), shaving machines (0.6%), toothbrush (0.5%), toothpastes (0.4%), deodorants (0.4%) and disposable diapers (0.3%).

In June 2023, of the 586 products that make up the family basket, 371 recorded price increases, 131 decreased and 84 products maintained their prices. The products with the highest price increase were redheaded onions (45.19%), Bonito fish (27.93%), mango (23.83%), green onions (18.17%), spinach (17.97%), white grapes (17.54%), horse mackerel (13.75%) and mackerel (11.59%). Meanwhile, the products with downward prices were coriander (-34.35%), celery (-18.14%), eviscerated chicken (-16.47%), beet (-15.48%), corn (-14.63%), chicken wings (-12.68%), bell pepper (-11.61%) and lettuce (-11.60%).

The increase in prices in Lima Metropolitan area during the month of June was mainly influenced by the decrease in prices in foods such as eviscerated chicken, breast and chicken leg, chicken eggs and white potatoes, which together contributed with -0.470 percentage points to the result of the month; offset by the increase in prices in onions, Bonito fish and Horse mackerel, mango and menu in restaurants.

During the month of June 2023, the variation in the Consumer Price Index of Lima Metropolitan area, without considering food and energy (underlying inflation) grew 0.14%.

In June of this year, the Consumer Price Index at National level decreased by 0.16%, reaching a cumulative variation at the sixth month of the year of 2.81% and the annualized of 6.71%. This result was mainly influenced by the price reduction reported in the consumer divisions: Foods and Non-Alcoholic Beverages (-1.11%), Transportation (-0.36%), Accommodation, Water, Electricity and Gas (-0.20%) and Communications (-0.01%). On the other hand, it increased the prices of Restaurants and Hotels (0.69%), Goods and Different Services (0.37%), Health (0.30%), Clothing Items and Footwear (0.29%), Recreation and Culture (0.25%), Alcoholic Beverages and Tobacco (0.23%), Furniture, Household Items (0.20%) and Education (0.14%).

In the month of analysis, twenty-two cities where it is estimated the Consumer Price Index registered a reduction of prices. The negative variations more significant were observed in the cities of Piura (-0.88%), Pucallpa (-0.75%), Chimbote (-0.60%), Ica (-0.51%) and Huancavelica (-0.45%). Meanwhile, four cities increased the price: Arequipa (0.19%), Tumbes (0.18%), Chiclayo (0.12%) and Tarapoto (0.06%).

In June 2023, the National Wholesale Price Index decreased 0.75%, with a cumulative variation of the first six months of -0.98% and annualized 0.51%, due to lower prices shown by domestic manufactured products (Diesel oil, GLP, industrial oil, cables: energy and general purpose, metal containers, meat: chicken and porcine, nails, cotton fiber yarns, vegetable shortening and polypropylene films); and livestock (live chicken, live hen and porcine cattle). However, agricultural product prices (onion, tomato, garlic, mango, dry beans, sweet potato, amylaceous corn, banana and paddy rice); and fishing products (Bonito, mackerel, horse mackerel, Cachema fish, Lisa fish, hake, Cabrilla fish and trout). In addition, prices of imported goods decreased due to a change in the exchange rate (fertilizers: nitrogen and binary, diesel oil, mobile phone, soybean flour, polyester fibers, soybean cakes, construction rods, transport vehicles, front loaders and bulldozers, automobiles, steel plates; uncarded cotton, hard yellow corn and wheat).

In the sixth month of the year, the Price Index of Machinery and Equipment in Lima Metropolitan area decreased 0.72% with a cumulative variation of -2.62% and the annualized one of 1.18%. This behavior was influenced by lower prices of domestically-sourced capital goods, such as machinery and equipment for transportation (moto-taxi, car bodies and springs for vehicle); machinery and equipment for industry (transformers, bakery ovens, electrical panels and shelves); other machinery and equipment (fishing nets) and machinery and equipment for agriculture (peaks and lamps). Likewise, the prices of imported capital goods decreased, affecting machinery and equipment for agriculture (tractors, lamps and peaks); machinery and equipment for industry (industrial sewing machines, computers, loader blades and printers); machinery and equipment for transport (road tractor for semi-trailer and pick-up trucks); and other machinery and equipment (electro medical devices).

In June 2023, the Price Index of Construction Materials in Lima Metropolitan area decreased 0.54% with a cumulative variation of 0.10% and the annualized variation of -0.42%. This behavior is explained by the lower prices of eight of its ten component groups: Electrical supplies (power cables and wires and cables for fixed installations) plastic tubing and accessories (PVC tubing: water, drainage and electricity) bricks (pastry rack, king kong, tambourine brick, and roof); also, glasses (tempered glass) metal (hot rolled steel tubes, steel plates: LAC and LAF, wavy zinc-plated nails and plates); tiles and mosaics (floor coatings); woods (clumped and oak boards) and binders (Portland Type I cement). However, prices in aggregates (sand and concrete) and concrete structures (premix concrete) rose.