(Adds context on inflation, expected growth rate in April)
By Teresa Cespedes
LIMA, June 9 (Reuters) - Peru’s annual inflation rate will likely cool to 3 percent by the end of the year, at the upper limit of the bank’s 1 to 3 percent target range and slightly higher than previously forecast, the head of the central bank said Tuesday.
The monetary authority had forecast full-year inflation at between 2 and 3 percent in a biannual report released May 22.
Central Bank President Julio Velarde said consumer prices in June would likely spike higher than he previously expected because of local fuel shortages and a port strike that slowed the distribution of imported goods.
Inflation also rose more rapidly than expected last month and the annual rate stood at 3.37 percent.
Inflation will likely remain above the target ceiling for a fourth month in a row in June, Velarde added during a presentation at an economic forum.
On Thursday the central bank will decide whether to hold the benchmark interest rate steady for the fifth month in a row as growth remains weak and the currency trades near a six-year low.
Velarde reiterated that he expects the economy to recover from a sharp slowdown over the past year on a mining and fishing rebound and increasing public investments.
Velarde said the economy likely expanded by between 4.2 and 4.7 percent in April. That would mark the fastest monthly growth rate since the 5.43 percent year-on-year expansion in March of last year, according to state statistics agency Inei.
Finance Minister Alonso Segura also forecast an April growth rate of at least 4 percent last week.
Official growth data for April is scheduled for release Monday.
Reporting By Teresa Cespedes; Editing by Chris Reese and Cynthia Osterman