In July 2023, the consumer prices of Lima Metropolitan area increased by 0.39%

The National Institute of Statistics and Informatics (INEI) announced that, in July 2023, the Metropolitan Lima Consumer Price Index increased 0.39% with a cumulative variation of 2.92% and that of the last twelve months (August 2022-July 2023) of 5.88%.

In the technical report Variation of the Economic Price Indicators, it is indicated that, the monthly result was mainly influenced by the increase in prices reported by the consumer divisions: Recreation and Culture (1.08%), Foods and Non-alcoholic Beverages (0.72%), Restaurants and Hotels (0.59%), Communications (0.37%), Goods and Miscellaneous Services (0.30%), Transportation (0.25%), Clothing Items and Footwear (0.25%), Furniture, Household Items and Ordinary Home Conservation (0.22%), Health (0.18%), Alcoholic Beverages, Tobacco and Narcotics (0.14%), and Education (0.08%). On the contrary, the prices of the Accommodation, Water, Electricity, Gas and Other Fuels division (-0.31%) decreased.

The higher prices observed in the Recreation and Culture division are explained by the increase in tour packages (4.1%), cultural services (2.8%) due to the increase in pay-tv service (6.4%) and movie tickets (0.4%); subscription of audiovisual services by streaming (1.1%); and domestic animals and related products (0.9%) due to the increase in pet food (1.0%).

In Foods and Non-Alcoholic Beverages, vegetable prices increased, legumes include potatoes and other tubers (3.3%) such as redheaded onions (34.9%), fresh yellow peppers (18.1%), green peas (15.7%), sweetcorn (9.7%), Macre squash (8.9%), cauliflower (8.3%), American green bean (7.3%), bell pepper (6.2%), and pickle (5.1%). Also, fruits (3.0%) such as lemon (28.2%), regular apple (19.1%), watermelon (18.2%), mango (12.8%), white grape (9.8%), Israel apple (8.5%), Island banana (3.5%), Delicia apple (2.7%), papaya (2.3%) and mandarin (1.5%); also, meat (1.9%) such as eviscerated chicken (3.8%), eviscerated hen (3.3%), chicken cuts: wings (2.3%), breast (2.0%), leg (1.6%), chicken giblets (2.2%), and ground beef (1.6%). In bread and cereals (0.5%), prices of dry short pasta noodles (2.8%), “Cancha” dry corn (1.9%), purple corn (1.7%), cookies: salty (1.6%), bathed (1.5%) and sweet (1.1%) increased; and packaged oatmeal (0.4%); in addition, prices of mineral water, soda, fruit juice and legumes (0.2%) were increased, such as packaged soda (1.3%) and still mineral water (1.0%).

Meanwhile, prices of fishes and seafood (-9.1%) such as Bonito fish (-17.6%), horse mackerel (-17.4%) and mackerel (-16.9%) decreased. Of the class milk, cheese and eggs (-0.9%) decreased the prices of fresh cow cheese (-2.8%) and chicken eggs (-1.8%); oils and fats (-0.7%) such as packaged vegetable oil (-1.9%); and sugar, jam, honey, chocolate and sugar candy (-0.3%) due to the decrease in the price of blonde sugar (-1.0%).

In Restaurants and Hotels increased food service prices in restaurants and similar locations (0.6%) due to the increase in pork cracklings (1.7%), sandwiches (1.1%), grilled meat (1.1%), chicken broth (0.9%), grilled chicken (0.7%), breakfast at restaurants (0.7%), Breaded chicken (0.7%), restaurant menu (0.5%) and Creole dishes (0.5%); and beverage service at similar restaurants and venues (0.6%) as the smoothed fruit juice (0.8%), hot drinks (0.7%) and beer served (0.6%).

The increase in prices in Transportation is supported by the increase in prices of passenger transport by air (3.5%) such as domestic airfare (18.3%); and the transport of passengers by road (0.5%) due to the increase in the fare in interprovincial buses (13.1%). While, prices of fuels for vehicles (-2.2%) such as liquefied gas of vehicle oil (-9.3%), gasohol (-2.0%) and diesel oil (-1.0%) decreased; likewise, lower prices were observed in the acquisition of vehicles (-0.8%) such as motorcycles (-1.5%) and new cars (-0.8%).

The price reduction registered in the Accommodation, Water, Electricity, Gas and Other Fuels division was due to the lower prices of residential natural gas consumption (-3.4%) due to the tariff specifications in force as of July 1, 2023, domestic propane gas (-2.4%) and leased housing (-0.2%) due to the price reduction of the rental of apartments in the building (-0.3%).

In July of 2023, of the 586 products that make up the family basket, 355 increased in prices, 126 decreased and 105 maintained their prices. The products with the highest price increase were onion (34.94%), lemon (28.22%), regular apple (19.11%), domestic airfare (18.27%), watermelon (18.18%), fresh yellow pepper (18.10%), green pea (15.71%) and interprovincial bus fare (13.12%). Meanwhile, those who reported prices down were green onions (-49.11%), Bonito fish (-17.58%), horse mackerel (-17.37%), mackerel (-16.92%), beet (-14.89%), lettuce (-12.74%), strawberry (-12.50%), and leek (-11.74%).

The increase in prices in Lima Metropolitan area during the month of July was mainly influenced by the increase in the price of foods such as onion, eviscerated chicken and lemon, as well as the menu in restaurant and in interprovincial buses fare that together contributed 0.335 percentage points to the monthly result; attenuated by the low prices in fishes such as Bonito fish and horse mackerel, strawberry, white potatoes and chicken eggs.

In July of 2023, the variation in the Consumer Price Index of Lima Metropolitan area, excluding food and energy (underlying inflation) grew 0.29%.

During July of this year, the Consumer Price Index at National Level increased by 0.34%, with a cumulative variation of 3.17% and the annualized variation of 6.02%. This result was influenced mainly by price increases in most consumer divisions: Recreation and Culture (0.72%), Foods and Non-alcoholic Beverages (0.62%), Restaurants and Hotels (0.56%), Goods and Miscellaneous Services (0.31%), Communications (0.30%), Furniture,Household Items (0.25%), Clothing Items and Footwear (0.23%), Transportation and Health (0.18% each), Alcoholic Beverages and Tobacco (0.11%) and Education (0.08%). Meanwhile, Accommodation, Water, Electricity and Gas prices decreased (-0.31%).

In the month under analysis, the twenty-six cities where the Consumer Price Index is calculated recorded price increases. The highest variations were observed in the cities of Huancavelica (1.00%), Abancay (0.78%), Cerro de Pasco (0.72%), Ica (0.71%), Tumbes (0.66%) and Huancayo (0.61%). Meanwhile, the cities with the lower variation were Tarapoto and Piura (0.08% each one), Arequipa (0.03%), Cajamarca (0.02%) and Chimbote (0.01%).

In July of 2023, the Wholesale Price Index at National Level decreased 0.33%, with a cumulative variation of -1.31% and the annualized -1.74%, due to the lower prices reported in domestic products, manufactured (industrial oil, gasohol, liquefied petroleum gas, plastic bags, construction rods, meat: chicken and turkey, cotton fiber yarns, refined soybean oil, metal containers, long pasta noodles and industrial wheat flour). However, agricultural product prices (onion, lemon, squash, amylaceous corn, paddy rice, and corn maize) increased; livestock (swine cattle, chicken standing, and hen standing); and fisheries (hake, Perico fish, Cojinova fish, and Bonito fish). Meanwhile, prices of imported goods (soy cake, fertilizer nitrogen, construction rods, PVC resins, crude soybean oil, truck tires, steel plates, mobile phone, front loaders, cyanide, lubricating oils; hard yellow corn, uncarded cotton and wheat) declined.

During the month under analysis, Price Index of Machinery and Equipment in Lima Metropolitan area decreased 0.99% with a cumulative variation of -3.59% and the annualized variation of -3.33%. This behavior was influenced by the lower variation in the exchange rate, mainly in imported capital goods, as machinery and equipment for agriculture: Tractors and lamps; machinery and equipment for the industry: computers, loader blades and industrial sewing machines; machinery and equipment for transport, motor vehicles for personnel transport, pick-up trucks and spare parts (oil filters); and other machinery and equipment: Medical electrical appliances and single-phase electrical meters. Likewise, prices of domestic capital goods were reduced, including machinery and equipment for the industry: transformers, electrical panels and shelves; machinery and equipment for transport: moto-taxi, motor vehicle docks and bodies; other machinery and equipment: fishing nets and trucks; and machinery and equipment for agriculture: peaks and lamps.

Finally, in July of 2023, Price Index of Construction Materials in Lima Metropolitan area decreased 0.53% with a cumulative variation of -0.43% and the annualized one of -1.65%. This behavior was determined by the low prices of nine of the ten groups that make up this indicator: tubes and plastic accessories (PVC tubes: water, drainage and electricity) glasses (tempered glass and primary glass) metal (hot rolled steel tubes, wavy zinc plates, steel plates: LAC and LAF, black wire and construction rods); bricks (for roof, Pandereta bricks and woven bricks) woods (Capirona wood and Tornillo wood) ceramic tiles and mosaics (floor and wall coatings) concrete structures (wavy sheets made of fiber and gypsum); aggregates (stone and concrete); electrical supplies (power cables and wires and cables for fixed installations). On the other hand, the prices of the binder group (Portland cement type V and type I) rose.