LIMA, Nov 13 (Reuters) - The president of Peru’s central bank said on Thursday economic growth in September was probably twice August’s 1.24 percent and that inflation will likely fall this month on slipping fuel and food costs.
Central Bank President Julio Velarde said strong cement and electrical consumption in September point to an ongoing economic recovery after growth slowed to 0.3 percent in June.
September’s data is scheduled for release on Monday.
“Growth in September isn’t going to be that bad,” Velarde told reporters. “It’s going to be better than in July and August, likely about double August’s growth.”
In the first eight months of 2014 the economy expanded 2.75 percent on the year, the weakest pace in five years.
The central bank will decide whether to hold its benchmark interest rate unchanged late on Thursday.
Velarde said falling fuel and food costs will ease temporary supply pressures on inflation.
The annual inflation rate rose to 3.09 percent in October, slightly above the bank’s target ceiling.
“We expect inflation to be negative in November,” Velarde said.
Velarde also said that recent losses in the country’s sol currency’s are “basically speculative.”
The central bank has sold $3.4 billion on the local spot market so far this year to offset the sol’s losses. The currency is now at its weakest in more than five years.
“When global markets calm down, people making bets will lift them and the sol will strengthen,” Velarde said. (Reporting by Teresa Cespedes Writing by Mitra Taj; Editing by James Dalgleish)