Peru's annual inflation rate slowed to 8.40% in March, though prices rose at a more-than-expected 1.25% on a monthly basis in the metropolitan region of the capital Lima, seen as the national benchmark.
Peru, the world's No. 2 copper producer, had been among the fastest-growing economies in the region, but political instability has threatened the economy. Road blockades and anti-government protests, which began after the December ouster and arrest of then-President Pedro Castillo, have left dozens of people dead, with total copper production in February falling from the previous month. As a result, there has been a push to prevent stagnating growth, with the government in Lima committing to billions in public spending. "A downward trend in annual inflation is projected to continue in the coming months with the return to the target range in the fourth quarter of this year, due to the moderation of the effect of international food and energy prices," the central bank said. Central bank president Julio Velarde said last month he expects annual inflation to ease to a rate of 3% by December, within the bank's target range. (Reporting by Marco Aquino and Isabel Woodford; Editing by Anthony Esposito)
