FX.co ★ Peru Inflation Rate Ticks Down to 3.9% in May

The annual inflation rate in Peru’s capital, Lima, eased to 3.9% in May 2026 from 4.01% in April, when it had reached its highest level since October 2023. Despite the slowdown, inflation remained above the central bank’s 1%–3% target band for the third consecutive month.

The deceleration was driven mainly by slower price increases in food and non-alcoholic beverages (2.88% vs 4.16% in April), alcoholic beverages and tobacco (0.05% vs 0.59%), and furnishings and household equipment (2.81% vs 2.96%). In contrast, prices continued to accelerate in several key categories, including transportation (15.10% vs 15.02%), restaurants and hotels (3.98% vs 3.54%), and recreation and culture (2.07% vs 1.79%).

Meanwhile, housing and utilities prices rose by 1.04%, reversing a 0.22% decline in the previous month, mainly due to adjustments in residential electricity tariffs.

On a monthly basis, the consumer price index fell by 0.16% in May, marking its first decline since October 2025 and offsetting a 0.52% increase in April. The drop was largely driven by lower prices for food (-1.69%) and transport (-0.19%).