Consumer prices of Lima Metropolitan area decreased in 0.09% in May of 2024

The National Institute of Statistics and Informatics (INEI) informed that during the month of May of 2024, the Consumer Price Index of Lima Metropolitan decreased 0.09%, with an accumulated variation as of the fifth month of 2024 of 1.45%; and in the last twelve months (June 2023 – May 2024) reached 2.00%.

In the technical report Variation of the Price Indicators of the Economy informed that the monthly result was influenced, mainly by the reduction of prices in the consumption divisions of Foods and Non-Alcoholic Beverages (-0.84%) and Accommodation, Water, Electricity, Gas and Other Fuels (-0.15%).

On the hand, it increased the prices of Transportation (0.31%), Restaurants and Hotels (0.28%), Education (0.17%), Goods and Miscellaneous Services (0.17%), Health (0.14%), Recreation and Culture (0.13%), Furniture, Articles for Household and Routine Household Maintenance (0.11%), Alcoholic Beverages, Tobacco and Narcotics (0.05%), Communications (0.03%) and Clothing Items and Footwear (0.02%).

The decrease of prices in Foods and Non-Alcoholic Beverages was due to the lower prices that registered the vegetables, legumes including potato and other tubers (-2.9%) such as, spinach (-12.5%), red onion (-12.1%), tomato (-10.6%), olluco (-10.5%), lettuce (-10.4%), celery (-7.8%), green onion (-7.1%), American green beans (-4.4%), yellow potato (-4.0%), Huayro potato (-3.5%), color potato (-1.7%) and white potato (-0.9%).

In addition, it decreased the prices of fishes and seafoods (-1.6%) such as mackerel (-14.1%), horse mackerel (-12.0%), Corvina fish (-5.9%) and Lisa fish (-1.6%); likewise, the fruits (-1.3%) such as strawberry (-12.5%), passion fruit (-9.9%), mandarin (-7.5%), Huayco peach (-7.1%), strong avocado (-7.1%), papaya (-6.9%), lemon (-5.4%), pineapple (-4.0%), Island Banana (-3.5%) and black grape (-3.5%).

Likewise, the downward prices were registered in the following products; meat (-0.5%) such as Breaded chicken (-2.1%), chicken cuts: wings (-1.7%), leg (-1.6%), breast (-0.8%) and eviscerated chicken (-1.3%); oils and fats (-0.5%) such as packaged vegetable oil (-1.6%); and milk, cheese and eggs (-0.4%) such as chicken eggs (-1.9%). Likewise, it reduced the prices of sugar, jam, honey chocolate and sugar candies (-0.1%) influenced in the lower prices of brown sugar (-0.5%) and white sugar (-0.2%).

The reduction of prices in Accommodation, Water, Electricity, Gas and other Fuels was due to the lower prices of consumption of residential electricity (-1.2%) as a consequence of the tariff sheet since May 1st and 4th; and the natural gas consumption by residential network (-0.3%) due to the new tariff sheet which came into force since May 1st of the current year. Meanwhile, the prices of domestic propane gas increased (2.0%).

In the division Transportation, increased the prices of inter-province omnibus fare (1.7%) and vehicular natural gas (0.2%). Meanwhile, it decreased the prices of transportation of passengers by air (-2.0%) such as the domestic airline ticket (-9.4%); and fuels for vehicles (-0.3%) such as liquefied petroleum gas for vehicle (-1.8%), Diesel petroleum (-0.3%) and gasohol (-0.2%).

In Restaurants and Hotels increased the prices of beverages services in restaurants and similar facilities (0.4%) such as served beer (0.6%) and blended fruit juice (0.3%); and food service in restaurants and similar facilities (0.3%) due to the increase of price observed in breakfast in restaurants (1.1%), pork cracklings (0.8%), sandwiches (0.6%), broths and regional soups (0.5%), creole and regional dishes (0.4%), marine dishes (0.3%), meat for grill (0.3%), grilled chicken (0.2%) and menu in restaurants (0.2%).

During the month of May of 2024, from the 586 products that are part of the family basket, 264 increased their price, 158 products decreased and 164 products keep their prices. The products that reported decrease in prices were: mackerel (-14.07%), spinach (-12.48%), strawberry (-12.46%), red onion (-12.14%), horse mackerel (-11.96%), coriander (-11.65%), tomato (-10.61%) and olluco (-10.53%).

On the other hand, the products with greater increase of prices were: blueberries (55.51%), mango (15.82%), Israel apple (10.79%), Macre squash (10.34%), whole olive (9.30%), yellow sweet potato (5.73%), carrot (5.60%) and Island banana (4.93%).

During the fifth month of the year, it was observed that the reduction of consumer prices was influenced, mainly, by the negative result that was observed in food products such as red onion, strawberry, tomato and eviscerated chicken; and in electricity rates, that together negatively contributed with -0.157 percentage points to the variation of the month; attenuated by the increase of prices in fruits such as blueberries, mango and silk banana, menu in restaurants and domestic gas.

During the month of May of 2024, the variation of the Consumer Price Index in Lima Metropolitan area, without considering foods and energy (underlying inflation) increased 0.16%.

During the month under analysis, the Consumer Price Index at National Level contracted in 0.13%, with an accumulated variation as of the month of May of 1.23% and in the last twelve months (June 2023-May 2024) 1.66%. This result was due, mainly to the lower prices that were registered in the consumption divisions of Foods and Non-Alcoholic Beverages (-0.96%).

Meanwhile, increase of prices were registered in the following divisions Transportation (0.24%), Restaurants and Hotels (0.23%), Goods and Different Services (0.21%), Health (0.18%), Education (0.14%), Recreation and Culture (0.10%), Furniture, Household Items and routine household maintenance (0.09%), Alcoholic Beverages and Tobacco (0.09%), Clothing Items and Footwear (0.07%), Accommodation, Water, Electricity and Gas (0.06%) and Communications (0.02%).

During May of 2024, of the 26 cities where it calculates the Consumer Price Index, twenty cities register decrease of prices, outstanding, Chimbote (-0.71%), Trujillo (-0.68%), Tumbes (-0.59%), Huaraz (-0.47%) and Tacna (-0.35%). On the other hand, among the cities with greater increase of prices outstood: Chachapoyas (0.31%), Cajamarca (0.15%), Moquegua (0.14%) and Pucallpa (0.12%).

During the month of May of 2024, the Wholesale Price Index reduced in 0.21% due to the lower prices that showed domestic goods, manufacturing (Diesel petroleum, gasohol, meats: swine, beef cattle and chicken; refined soy oil, whole-wheat flour, long pasta, evaporated milk, polyester resins, construction rods, bricks: for roof, pandereta brick and king kong brick); agriculture (olluco, mandarin, onion, tomato, banana, paddy rice, lemon and hard yellow corn); livestock (chicken and live chicken); fishing (hake, horse mackerel, Cachema fish and Bonito fish).

Meanwhile, it increased the prices of imported goods, manufacturing (forklift, resins: PVC and polypropylene, pneumatics for truck, front loaders, mobile phone, and vehicles for transportation); nevertheless, it drops the prices of agricultural products (hard yellow corn, not carded cotton and wheat).

During the month under analysis, the Price Index of Machinery and Equipment increased in 0.56% due to the higher prices in machinery and equipment imported, for industry (forklift, laptop computers, excavators and wheel loaders); agriculture (agriculture tractors); transportation (automotive vehicles for transportation of persons, air filters and pick-up trucks); and other machinery and equipment (microscope and different electricity meters).

In addition, it increases the prices of machinery and national equipment, for industry (fans of industrial use, freezing equipment and electrical transformers) and transportation (bodywork, springs for automotive vehicle and moto-taxi). Meanwhile, it drops the prices of other machinery and equipment (nets for a catch).

During May of 2024, the Price Index of Construction Materials in Lima Metropolitan area decreased in 0.26% due to the lower prices in seven of the ten groups that are part of this indicator; tiles and mosaics (floor coverings); bricks (pandereta brick and king kong brick); metallics (construction rods, zinc corrugated plates and nails); tubes and plastic fittings (PVC accessories for water and sewerage, tubes for: water and sewerage); woods (oak tree, Capirona wood and plywood); aggregates (concrete and sand) and binder (Portland cement type I).

On the other hand, it increased the prices of other groups such as glasses (primary glasses) and power supplies (power cable and flexible cables of general use). It is worth to mention that the group of concrete structures did not show a change of prices.