Peru Closes 2023 With Inflation Rate Of 3.24%, Lowest In 3 Years

Peru has closed the year 2023 with an inflation rate of 3.24% -- its lowest rate in the last three years, according to the National Institute of Statistics and Information.

The Central Reserve Bank of Peru projected previously that the inflation rate in 2023 would close at 3.8%. However, recent data showed that the country had the lowest inflation rate since 2020.

Furthermore, Peru has become one of the countries with the lowest inflation rate in Latin America, as per Reuters. The rate at the beginning of the year was reportedly 8.66%.

Alex Contreras, the minister of Economy and Finance of Peru, had announced a package in November comprising more than two dozen new measures aimed at helping the country's economy by boosting investments.

However, the country is currently experiencing a decline in private investment, adverse effects of El Nino weather phenomenon and an increase in civil unrest. Furthermore, the COVID-19 pandemic also negatively impacted the country, which had to avail $300 Million loan from the Inter-American Development Bank to improve its economic condition.

Even though the inflation rate has decreased in Peru, the country has been dealing with social unrest for a while now. Peru's President Dina Boluarte declared a state of emergency in September in three districts of the country as the crime rate was increasing.

Illegal drug trade was also another factor driving up the crime rate in the country.

The crime rate in the capital of the country rose to 160,200 cases in 2022, while in 2021 there were 120,350 cases reported, as per Travel Tomorrow. One such recent case included at least 15 people being injured following the throwing of a war grenade into a nightclub.

Aside from this, there are several different types of crimes reported in the country, including murder, corruption, and the illegal drug trade.

The United States issued an advisory last year in the wake of the crime, civil unrest, and the possibility of kidnapping in Peru, and urged the former's citizens not to travel to several regions of Latin American country, including Loreto and Puno.