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The annual inflation rate in Peru’s capital, Lima, accelerated to 1.70% in January 2026 from 1.51% in December. It marked the highest inflation rate since December 2024 but remained within the central bank’s target range of 1% to 3%. The acceleration in inflation was mainly driven by faster increases in the prices of food and non-alcoholic beverages (2.13% vs 1.68% in December), the highest in 22 months, while transportation prices rose more sharply (1.81% vs 1.05%). Conversely, housing and utilities prices fell at a faster pace (-2.52% vs -2.34%). On a monthly basis, the CPI in Lima edged up 0.10% in January, easing from a 0.24% increase in December, which was the fastest pace in eight months.