Another blow to the image of Alan's perfect 'investment grade' Peru. In the words of local analyst Roberto Flores (quoted by Reuters here) "Even though the effect of the rise in fuel tariffs was going to add to inflation, such a rise wasn't expected......Inflationary expectations are still relatively high, despite food prices showing a slight downward tendency in the international markets."
Or to quote Otto, "This like totally sucks, dude." The 6.22% trailing yearly inflation might not sound much to you, but the bias towards price rises on foodstuffs (9.48%) and now the latest round of price rises in public transport is hurting the lower socioeconomic strata much more than the people who write the column inches in newspapers and try to convince the world that things really aren't that bad.
And Ooops! A quick lesson in Economics 101 for Jorge MiniMe Del Castillo; Just this morning he was exhorting Peru to eat more fish and potatoes and telling us how the switch from chicken to fish was saving 'las caseras' money. Result? Fish went up 2.07% in just one month (more than January to August combined) and potatoes/tubers up 9%. Jeesh what a dickhead that guy is, seriously.
Or to quote Otto, "This like totally sucks, dude." The 6.22% trailing yearly inflation might not sound much to you, but the bias towards price rises on foodstuffs (9.48%) and now the latest round of price rises in public transport is hurting the lower socioeconomic strata much more than the people who write the column inches in newspapers and try to convince the world that things really aren't that bad.
And Ooops! A quick lesson in Economics 101 for Jorge MiniMe Del Castillo; Just this morning he was exhorting Peru to eat more fish and potatoes and telling us how the switch from chicken to fish was saving 'las caseras' money. Result? Fish went up 2.07% in just one month (more than January to August combined) and potatoes/tubers up 9%. Jeesh what a dickhead that guy is, seriously.
Also, take note of that wholesale price index; you telling me there isn't bottled up inflation waiting for the retail number in the months to come? Finally, check back at October and November 2007, because between them they added just 0.42% to last year's total. And PPK said that Peruvian inflation would be at an annualized 3% by January...what the hell was he smoking?Alan García = 19% approval rating. Nuff said.