U.S.-born global financial crisis metastasized: Peru’s year-end inflation expected to top 7.6 percent

Peru's average national inflation rate is expected to rise well beyond the Central Bank's set goal of 2 percent to a decade-high of 7.6 percent by the end of 2008, according to Lima's Chamber of Commerce, or CCL.

Imported inflation, which occurs when imported raw or partly-finished goods become more expensive, often as a result of currency depreciation, no longer drives inflation in Peru. According to the CCL, 75 percent of inflation is due to internal factors, such as a greater internal demand for goods.

“Before, external factors were the most important component of inflation,” CCL Economic Institute’s Director, César Peñaranda, told daily La Republica. “But now, they have reduced the prices of food and oil. The Central Bank’s measures are good and couldn’t be any more forceful because that would complicate the economy.”

Peru’s average national inflation rate for the first eight months of this year registered at 4.7 percent, beyond the Central Bank’s set goal of 2 percent, and rose slightly from 0.56 percent in July to 0.59 percent in August. Consumer prices rose 0.57 percent in September, and transportation costs have surged.

But, Peru’s Central Bank, who in August lifted deposit requirements for borrowers in an attempt to control inflationary pressures, has yet to budge on its benchmark interest rate fixed at 6.5 percent.

“This decision is based on the high level of uncertainty concerning the world economy’s evolution and the impact it will have on global economic activity, our exports and imports’ international prices as well as the international financial flows,” said a representative of the Central Bank Thursday after a monthly monetary policy meeting.

“We must emphasize that recently prices have fallen for raw material and oil, that imported food prices tend to fall, and that this favors the gradual reduction of inflation in the country.”

Article courtesy of the Peruvian Times.

Update on The Colour of Hope's Star Fundraisers

The Colour of Hope's star fundraisers for 2008, Jess and Rosa Batten-Stevens from Ottery St Mary, Devon, are still going strong with their fundraising campaign. A very generous donation has just raised their total to an amazing £1350!

The girls have won 5 firsts and one third prize so far, and still have a few carnivals left to go. If you happen to be in the South West, do look out for them at Exmouth carnival tomorrow evening, or log on to The Midweek Herald's Carnival Capers blog for carnival photos, videos and news.

The Colour of Hope Microcredit Scheme Success

Back in July, The Colour of Hope microcredit scheme helped two of our project participants, Hugo and Angelica, to set up their own grocery shops. Both shops are now up and running and looking good. They are giving both families a steady source of income which goes a long way towards keeping their children healthy and in school. Many thanks to Hugo and Angelica's sponsors for all their support.

The Colour of Hope's Top Fundraisers 2008

The Colour of Hope's star fundraisers this year are Jess and Rosa Batten-Stevens, aged 10 and 8. The girls are yet again taking part in all of this year’s East Devon carnivals in aid of the charity. Their entry, “Little Chief Big Totem”, has met with great success so far, winning first prize at all four of the first carnivals.

Dedicated Jess and Rosa have worked tirelessly over their summer holiday getting sponsors from local people, businesses and churches, raising a stunning £1150 so far! But with more than half the carnivals still to go, they’re hoping their final total amounts to even more!

All support for these inspiring young girls’ charity efforts will be much appreciated. If you’d like to make a donation on their behalf, please contact The Colour of Hope directly at info@thecolourofhope.org

It's Carnival Time!

Carnival season will soon be upon us in the UK and once again Jess and Rosa Batten-Stevens from Ottery St Mary will be taking part in all the East Devon Carnivals as a walking pair.

The girls raised a stunning £450 for The Colour of Hope last year, which has not only enabled one of our young people to set up his own grocery store, but also brought emergency medical care to his 3-year-old son Luis, saving his life after he drank bleach at nursery. (Read the full story here.)

Jess and Rosa are hoping to top last year's record and any donations will be very gratefully received. If you'd like to sponsor the girls, please contact The Colour of Hope directly at info@thecolourofhope.org

View the girls in their winning 2007 carnival costumes here (2008 costumes yet to be revealed)!

From Street Kids to Shop Owners

Angelica and Hugo have become the first two young people to benefit from The Colour of Hope’s microcredit scheme. Having grown up on the streets, sniffing glue and stealing to survive, these two young people have truly fought to get where they are today.

Desperate to improve the quality of life for their young families, they have been two of our most determined participants, putting in a great deal of effort to get their grocery shops up and running. They’ve had to work into the small hours of the morning more than once over the last few weeks, shifting copious amounts of sand and cement up the mountainside. But the shops are definitely coming into shape now, with the floors down, shelving up and the first round of goods purchased.

Having their own source of income will not only provide Angelica and Hugo more dignified employment, but will also mean improved access to education and healthcare, better living conditions and a healthier diet for their children. Many thanks to Jess and Rosa Batten-Stevens and Topsham Friends Circle, Hugo and Angelica’s sponsors, for helping make this dream a reality. Photos of the shops coming soon!

Bowling with Colchester Sixth Form College

Earlier this month, members of Colchester Sixth Form College, UK, arrived in Peru to work at a school for special-needs children. During their stay they paid The Colour of Hope a visit too and were able to meet some of the young people we're working with. It made for an interesting cultural and social exchange, given that both groups were around the same age and at the same stage of life, thinking about job opportunities or further education.

After chatting at the training centre, we took everyone bowling, thanks to the generosity of one of our volunteers, Will Gale, and Kevin Murphy, who accompanied the sixth-formers. This was an excellent activity for raising our young people's self-confidence and everyone enjoyed the outing very much.