The Central Reserve Bank of Peru reported that Governor Julio Velarde told a World Economic Forum panel in Davos that Peruvian inflation could be close to 1% in the first quarter of 2025 and finish the year around 2%. Inflation closed 2024 at 2%, within the bank’s target range. Velarde contrasted Peru and Canada with other economies, arguing the final disinflation leg back to 2% was not difficult for Peru. He suggested inflation could keep falling elsewhere in the Americas except possibly Brazil, while US inflation may remain around 2.5%. On the global outlook, he said the US dollar could strengthen in 2025 as a safe-haven asset amid uncertainty surrounding the start of a new US administration, and noted Peru is particularly exposed to commodity-price shocks because staples such as wheat have a higher weight in its consumption basket. Velarde also participated in a separate Davos discussion on financial institutions and innovation alongside senior executives from digital finance and market infrastructure firms, including Nubank and Euroclear.
Central Bank of Peru 2025-01-23
Central Reserve Bank of Peru governor projects inflation to end 2025 near 2% at Davos
At the World Economic Forum in Davos, Central Reserve Bank of Peru's Governor Julio Velarde stated that Peruvian inflation could reach 1% in Q1 2025 and end the year at 2%, aligning with the bank's target. Velarde highlighted Peru's relative ease in achieving disinflation compared to other economies and noted potential US dollar strengthening in 2025 due to geopolitical uncertainties. He also discussed financial innovation with executives from Nubank and Euroclear.