[Global Focus] Despite Presidential Impeachment, Angry Peruvian Public Sentiment... Controlling Inflation Is the Key

Bloodshed Erupts at Castillo Impeachment Protest
Political Newcomer Boluarte Faces Uncertain Prospects for Stabilizing the Situation
Inflation Surges Over 8% for 18 Consecutive Months... Economic Hardship Continues

Political instability in Peru continues to deepen following the impeachment and ousting of former President Pedro Castillo. Castillo, who was arrested by the police immediately after his impeachment, has announced his intention to seek asylum in Mexico, raising concerns that Peru's political turmoil may be prolonged.

Dina Boluarte, the newly appointed president and the first female president in Peru's history, is widely seen as lacking the political capacity to stabilize the current national situation. Boluarte is a political newcomer with only four years of experience, and there is no clear solution to the economic crisis, which is a major cause of the ongoing instability. This has led to fears that impeachment and ousting could be repeated regardless of which administration takes power in the future.

◇Protests Against Castillo's Impeachment... Bloodshed Continues

[Image source=AP Yonhap News]

In Peru, protests opposing the impeachment of former President Castillo, which occurred on the 7th (local time), have intensified and escalated into violent clashes. Fierce demonstrations are taking place across the country, including the capital Lima.

According to the Peruvian daily Andina on the 11th, supporters of Castillo have been staging intense protests nationwide, including in Lima, since the previous day, resulting in one death and over 20 injuries, including police officers.

Protesters have blocked major roads and set tires on fire, condemning the Congress for impeaching Castillo due to political incompetence. They have labeled President Boluarte as a "usurper" and are chanting slogans demanding early presidential and parliamentary elections.

The Peruvian National Police issued a statement expressing regret over the deaths during the protest suppression process and emphasized that the police guarantee the right to peaceful protest while firmly rejecting any form of violence.

Currently, former President Castillo, who was ousted by impeachment on the 7th, has been reclassified as a suspect and is under preventive detention for seven days on charges of rebellion and conspiracy. Castillo, who was the first peasant-origin president in Peru's history and took office after winning the July election, attempted a counterattack by declaring the dissolution of Congress before the impeachment vote but was ultimately removed after 16 months in office.

Castillo plans to seek asylum in Mexico, and if his asylum request is accepted, Peru's political instability is expected to be prolonged. According to CNN, on the 9th, Castillo's lawyer met with Pablo Monroy, the Mexican ambassador to Peru, to submit an asylum application. The lawyer stated in the application that "former President Castillo is being subjected to baseless persecution by judicial authorities" and "has been completely isolated for holding views different from those who control all state institutions." The Mexican government is expected to accept the asylum request.

◇Political Newcomer President Boluarte... Uncertain if She Will Complete Remaining Term

[Image source=EPA Yonhap News]

It remains uncertain whether President Boluarte, Peru's first female president who succeeded Castillo, can quell the turmoil. As a newcomer who entered politics only in 2018, Boluarte has almost no political support base.

According to the British BBC, Boluarte, a lawyer by profession, first entered politics by running for the mayoral election of the Surquillo district in Lima in 2018. She lost that election with less than 4% of the vote and also lost a by-election for Congress two years later. Without any political support base, she entered national politics as Castillo's running mate in the last presidential election.

President Boluarte is attempting to calm the political chaos by forming a so-called "National Unity Government," but political instability is expected to continue. There is strong public demand for early elections. According to a poll conducted last month by the Peru Institute of Political Studies (IEP), 87% of respondents supported holding early general elections following Castillo's impeachment.

As a result, there is widespread speculation both inside and outside Peru that Boluarte may find it difficult to complete the remaining term scheduled until July 2026. Fernando Tuesta, former head of the National Election Jury, told AFP that "both the executive and legislative branches are important for Boluarte to maintain her term until 2026," adding, "One part (the executive) has been resolved, but Congress remains a problem."

◇Controlling Soaring Prices That Have Alienated Public Sentiment Is Key to Political Stability

[Image source=AP Yonhap News]

The most urgent issue President Boluarte must address to maintain her administration and resolve political instability is the soaring prices. Public sentiment continues to worsen as production of staple goods, including potatoes, has sharply declined.

According to CNBC, the Central Bank of Peru announced on the 7th, the day Castillo was ousted, that it would raise the benchmark interest rate by 0.25 percentage points to 7.5%. This marks the 17th consecutive time the Central Bank has increased the rate by 0.25 percentage points.

The Central Bank of Peru stated that it is raising interest rates to curb the accelerating inflation, especially in food and electricity prices. Last month, the consumer price index (CPI) in the Lima metropolitan area soared by 8.45% year-on-year. Although slightly lower than the previous peak of 8.81% in June, it still exceeded 8.28% in October.

Peru's CPI has exceeded the Central Bank's target upper limit of 3.0% for 18 consecutive months. Analysts attribute this largely to the surge in fertilizer and fuel prices caused by Russia's invasion of Ukraine.

The Central Bank expressed concern in a statement, saying, "We expect inflation to return to the target range only in the fourth quarter of next year," and noted that "the global economic environment is worsening due to interest rate hikes in developed countries, China's low growth, and international frictions and conflicts."

The poor potato harvest, a staple crop, is further worsening public sentiment. According to the British Guardian, since Russia's invasion of Ukraine in February this year, potato planting in Peru has dropped to about 30% of the previous year's level. Peru, which depends on Russia for 75% of its fertilizer, has seen fertilizer prices soar three to four times higher than last year due to the Ukraine war, causing a sharp decline in potato planting by farmers.

In October, under orders from former President Castillo, the Peruvian Navy announced an alternative plan to collect seabird guano from nearby islands to supply fertilizer, but production accounts for only about 4-5% of total fertilizer demand, failing to curb fertilizer prices. There are concerns that fertilizer supply will worsen if the Ukraine war prolongs.

This content was produced with the assistance of AI translation services.