The president of Central Reserve Bank (BCR), Julio Velardestated that in America, there are rulers and economy ministers who have no empathy for the results of inflation.
Look: How are the economic figures that give the president “peace of mind”?
“Many times, finance ministers and rulers do not show enough empathy about inflation,” he said during his participation in the World Economic Forum taking place in Davos.
In that sense, he recalled that the former minister of Chile, Felipe Larraín, was criticized when, in the midst of a financial crisis, he stated that the price of flowers fell 20% and people responded: “I can’t eat an iPad or flowers.”
On the other hand, Velarde explained that for Peru, beyond the expansion policies in various countries, what worries it is the behavior of commodity prices that can have an impact on inflation.
He recalled that a few years ago poverty was affected not only by the pandemic, but also by the increase in commodity prices. In Peru the weight of some foods such as wheat is much more important than in developed countries
“Compared to Switzerland, for example, when commodity prices increase, it becomes more CPI (consumer price index). For example, in bread, the price of flour is perhaps 2% in the case of Sweden, but in Peru it is much more important,” he stated.
The president of the BCR highlighted that Peruvian inflation closed 2024 at 2%, within the BCRP’s target range, and highlighted that, in the first quarter of this year, inflation could be close to 1%, to close 2025 close to 2%. %.
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