LIMA, Reuters – Peru’s central bank increased the benchmark interest rate to 5.5% by 50 basis points on Thursday. This is the 11th consecutive increase. Authorities in the Andean nation of copper producers are fighting stubbornly high inflation.

While prices increased more slowly than usual in May, the annual inflation rate still reached 8.09%. It is now at its highest level for 24 years.

Peru’s central banks have raised its key interest rate by 525 basis points during the current tightening of monetary policy. This is a significant increase in comparison to mid-2021. This decision comes after rate increases this week in Brazil and Chile, which were made to address inflation not falling as fast as they expected.

The bank reiterated its guidance last month and stated that annual inflation will begin to decline in July.

According to the bank, “Most of the leading indicators and economic expectations remain pessimistic.”