(Bloomberg) -- Peru’s inflation rate plunged more than expected by all forecasters last month, boosting the chance that the central bank will extend a series of interest rate cuts.

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Consumer prices in Lima rose 1.78% in September from a year earlier, according to national statistics agency INEI. That was lower than predicted by all 10 economists surveyed by Bloomberg, whose median forecast was 2.09%.

Prices fell 0.24% from a month earlier.

This was the first time since 2020 that Lima inflation, which is the central bank’s preferred gauge, has slowed below 2%. Consumer price rises have been falling from a post-pandemic peak of 8.8% in June 2022.

The inflation figures were shared early by Prime Minister Gustavo Adrianzen on Monday evening, a rare instance where the government has published key economic statistics before their scheduled release.

“If we continue this way, the economy will grow more than expected,” Adrianzen wrote on X.

Peru has the slowest inflation among Latin America’s largest economies, as well as the lowest benchmark interest rate. The central bank last month cut its key rate to 5.25%.

Peru’s government, led by President Dina Boluarte, has been pressuring the independent central bank to continue to ease monetary policy to boost the economy, which is recovering from a recession in 2023. So far this year, growth has beat expectations and the finance ministry is hoping that economic growth can top its estimated 3.2% for 2024.

The central bank will announce its latest interest rate decision next week. The bank targets annual consumer price rises of 2%, plus or minus one percentage point.

--With assistance from Robert Jameson.

(Updates to add chart after fourth paragraph)

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