UPDATE 1-Peru May inflation rises to 0.24 percent

(Adds details)

LIMA, June 1 (BestGrowthStock) – Peru’s inflation rate for May rose
to 0.24 percent from 0.03 percent in April, the country’s
statistics agency said on Tuesday.

The index, based on prices in Lima, is used by the central
bank to guide monetary policy decisions.

Economists in a Reuters poll had forecast inflation of 0.15
percent in May.

The central bank took advantage of low inflation last year
to slash its benchmark interest rate to 1.25 percent in a bid
to boost demand during an economic downturn, but last month it
raised the rate to 1.5 percent. [nN06693287]

Peru’s government cut spending and put a moratorium on
borrowing last month to meet fiscal targets, stem inflation and
avoid overheating as the economy rebounds. [ID:nN1196393]

The central bank’s annual inflation target for 2010 is 2.5
percent.

Investing Tools
(Reporting by Teresa Cespedes; Writing by Eduardo Garcia;
Editing by Padraic Cassidy)

UPDATE 1-Peru May inflation rises to 0.24 percent