Soulsilver Source On Cydia

FOODS THAT ARE MORE UP IN BASKET

The impact of higher imported food prices would be 5.6 and 3.7 percentage points in domestic food inflation and overall inflation this year, according to a study by the IDB.

The effect of price increases of imported food and oil prices on domestic inflation is an issue that concerns everyone. Particularly in domestic food prices.

According to a study by Eduardo Lora, Andrew Powell and the Department Pilar Tavella Research Inter-American Development Bank (IDB), this impact differs significantly between countries, but hovers around 20% in the poorest countries (Bolivia, Ecuador, El Salvador, Guatemala, and Honduras) in the region and in less than 10% in the Bahamas, Brazil, Mexico, Panama and Peru.

In our country the specific impact is between 5 and 5.6 percentage points over inflation of food, (ie 5% to 5.6% more) compared to December 2010.

The aforementioned study (what effect inflation will have the shock of food prices in Latin America?), Also indicates that this year should expect increases in the rate total inflation (CPI) of Peru between 3 and 3.7 percentage points (see table) by the impact of rising international food prices.

On the other hand, increased international price of oil price would also have an impact on both total inflation (CPI) of Peru (between 0.5 and 0.6 percentage points) and domestic food inflation (see table). Since February this year the fuel prices in the country have been frozen by order of the Government.

The IDB study estimates are somewhat lower than the projections of Bruno Seminario (04/13/2011 Management) for whom the domestic inflation rate may exceed 6% this year.

But the IDB study projection assumes that international prices remain at their February this year and that the responses of the markets and domestic policies are the same as those observed in the past.

However, the political landscape has changed election economic expectations among market players, at least the short term. Additionally, nothing ensures that international food prices keep rising, so the domestic inflation this year could be even higher.

For now, to April this year the impact of higher imported food and resulted in increases in inflation Annual food item (5.05% per annum), particularly in bread and cereals (7.1%) and fats and oils (11.9%). The increase in wholesale prices in April yellow corn (3%) contributed to the increase in chicken prices (4.7%). There is also a reservoir of fuel prices.