MercoPress. South Atlantic News Agency

Uruguay's YoY inflation up but still within target range

Sugar went down 10.81%, the INE reported

Uruguayan authorities released a report Monday showing that year-on-year inflation stood at 5.45% in July, thus remaining within target range although dangerously approaching its upper limits. According to the National Institute of Statistics (INE), the Consumer Price Index (CPI) recorded a monthly variation of 0.11% and accumulated an increase of 3.73% so far this year.

Pursuant to the Central Bank's Macroeconomic Coordination Committee guidelines, inflation this year should be between 3% and 6% by the Central Bank, something that has been achieved uninterruptedly since June 2023.

The INE study also found that the items going up the most in July were transport (0.93%) as a result of an adjustment in the exchange rate between the Uruguayan peso and the US dollar. Hence, air fares rose 5.72%.

Insurance and financial services increased by 0.67%, and Restaurants and accommodation services by 0.41%, the INE survey also detected.

On the other end, Clothing and footwear went down 2.18%, driven by a fall in prices in the autumn-winter season, mainly in Women's Clothing (-4.96%) and Women's Footwear (-2.88%).

Food and non-alcoholic beverages also dropped 0.56%, with sugar falling 10.81%.

The interannual inflation in June stood at 4.79%.