PERU: Central Bank Not Yet Considering Capital Controls Even As GDP Surges.

WSJ/    Central bank President Julio Velarde said Peru isn't considering capital controls even as it tries to prevent the SOL from appreciating rapidly. Interest rate raises and larger bank reserve requirements have helped to keep inflation at bay while GDP has surged nearly 8.2% in the first half of 2010. Officials say they don't have a target rate for the sol but have bought around $6.5 billion usd in the market. The sol has appreciated 3% against the usd so far in 2010.

PERU: Surging Demand Raises Consumer Prices At Fastest Pace Since August 2009.

BLOOMBERG/    July's consumer prices rose at the fastest pace in almost a year. And annual inflation increased to 1.82% last month, the fastest since August 2009. But the increase was in line with economists’ estimates of a 1.81% increase. The sixth-largest economy in South America expanded 9.2% in May from a year earlier, and may post growth of close to 10% in June, believes central bank President Julio Velarde.