Peru’s annual inflation slowed more than expected in September, as the central bank warns that price increases may remain above target due to looming effects from El Nino on farming.

Consumer prices in Lima rose 5.04% in September from a year earlier, lower than the 5.31% median forecast of economists surveyed by Bloomberg. In August, annual inflation stood at 5.58%.

Read More: Peru’s Velarde Not Sure Inflation Can Hit Target in Early 2024

After Peru’s central bank started cutting rates from a two-decade high in September, bank chief Julio Velarde warned that annual inflation may not reach the target of 1% to 3% until after the first quarter of next year; the bank’s goal was for inflation to reach that range by March. Rising food costs is the main concern as the El Nino weather pattern is already impacting farming, with heavy rains expected in the coming months.