Peru paper compares regional and national inflation

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A working paper, published by the Central Bank of Peru on October 4, examines the relationship between regional and national inflation dynamics. In Peru, the measure of inflation in Lima – the country's capital and largest city – is used in the central bank's targeting regime.

The authors, Diego Winkelried and José Enrique Gutierrez, say the quality of the countrywide measure has improved and could viably become the chief measure, so it is important to examine the differences of using one rate

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