Wednesday, January 15th 2014 - 19:24 UTC

Uruguay among the world's ten countries with highest inflation

Uruguay is ranked among the world's ten countries with the highest inflation, having climbed from position 15 to 10 last year, only surpassed in Latin America by Venezuela and Argentina. Last year Uruguay ended with an inflation of 8.52%, well above the 4% to 6% target, and according to Central bank officials “it remains the main challenge for the country's economic policy”.

Only Venezuela and Argentina in the region have higher inflation rates

 The concern is well founded when compared to inflation in 115 countries, since in the last few years Uruguay has been ranked 16 (2010); 8 (2011) and 15 (2012). This is particularly confusing since 'inflationary pressures come from the demand side“, and Uruguay's economy has completed a decade of strong uninterrupted growth. In China for example with 7.3% growth in 2013, inflation was 2.5%.

In Latin America Venezuela leads with 56.2% as reported by President Nicolas Maduro who blamed the business community of speculation and involvement in ”an economic war against his regime”.

Argentina follows with official Indec inflation in the last twelve months in the range of 11%, although the so called Congressional index, an average of private consultants, reached a 22 year record breaking of 3.8% in December and 28.38% in the twelve months of last year.

Behind Uruguay in fourth position comes Bolivia with 6.48%, which was higher than in 2012 (4.5%) and below the central bank's target of 7.5%. Brazil follows with 5.84%, which was in the range of target, 4.5% plus minus two percentage points. However it was well above what market analysts were expecting.

Paraguay which was the fastest growing economy in the region, 12.9% in 2013, experienced an inflation of 3.7%, while in Chile it reached 3%, half way between the target of 2% to 4%.

Finally along the Pacific, Peru registered an inflation of 2.86%; Ecuador, 2.7% and Colombia, 1.94%, the lowest inflation in a decade.

While this happens in Latin America, in the developing countries such as the European Union the challenge is beating deflation. In the Euro zone, still in ICU, inflation last year was 0.8%, below the European central bank target of 2%.

Meantime in the United States inflation in the last eleven months was 1.2%, while the Federal Reserve target stands at 2%.

35 comments Feed

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1 Anglotino (#) Jan 15th, 2014 - 09:05 pm Report abuse
So while inflation eats away at the purchasing power of the poor and common folk in Venezuela, Bolivia, Argentina, Uruguay and Brazil; the low rates in Paraguay, Chile, Peru, Ecuador and Colombia are protecting the advances in poverty reduction.

There's certainly an economic divide through South America. Interesting to see other commonalities each group has.
2 Fido Dido (#) Jan 16th, 2014 - 03:26 am Report abuse
“the low rates in Paraguay, Chile, Peru, Ecuador and Colombia are protecting the advances in poverty reduction. ”

What poverty reduction in Chile, Peru, and Colombia? Really? Grow up...those nations have done zero in poverty reduction.

In the Euro zone, still in ICU, inflation last year was 0.8%, below the European central bank target of 2%.”
It's going to stay for a long time in the ICU. There is NO ECONOMIC growth (not even in holland where unemployment is rising and youth is leaving).

“Meantime in the United States inflation in the last eleven months was 1.2%, while the Federal Reserve target stands at 2%.”

Anyone who believes the 2% inflation number is in idiot. We all know that real inflation is higher and you can see that in food. There is only deflation in electronics and clothes (duhh, because there IS NO DEMAND from local consumers who are broke and heavily in debt..that's why the holiday sales numbers are a disaster, worse compare to last year).
3 Anglotino (#) Jan 16th, 2014 - 10:53 am Report abuse

Which country lies about inflation?

4 Stevie (#) Jan 16th, 2014 - 11:33 am Report abuse
Very few in Somalia are dying of obesity.
USA should... you know...

Ozzie logic...
5 Don Miguel (#) Jan 16th, 2014 - 11:55 am Report abuse
Get out of Mercosur, Uruguay! Look at Chile, Peru and Colombia - they're absolutely on fire for 2014...
6 Conqueror (#) Jan 16th, 2014 - 11:58 am Report abuse
@2 Well, here we are. Inflation in the wonderful UK. An annual rate of 2.5%!

Curiously, inflation and growth are not the same thing. As witness the UK's annual growth rate that finished at 1.9%.

No point in looking at argieland's figures as they are provided by Indec.

However, we can see that the euro zone is pulling out of recession.

Having struggled through a 1.2% recession, the euro zone appears to be pulling out faster than it went in.

I don't understand why you suggest that anyone is an idiot that believes the 2% inflation number. One presumes that you didn't read the article. See, it says that 2% is the Federal Reserve target. More comments about the 1.2%?

But the important consideration is credibility. The UK and USA know that falsifying data is counterproductive. Possibly, argieland is beginning to understand that falsifying data only leads to bigger and more incredible lies. A wake-up call from the IMF that we, on here, have known for a considerable time. Argieland lies. Other latams also lie. The difficulty is in determining how much they are lying. But, since I am addressing “Doggie”, let's look at Brazil. Bid for and got the World Cup and the Olympics. But now it turns out that it isn't up to either. All the stadiums ready, are they?Plenty of airfields/airports for all the expected visitors, are there? All foreign visitors will be safe, will they? No armed gangs planning on targeting visitors, are there? Everybody safe from muggings, armed robberies, injuries, murders, are they? Anybody who believes any of that is an idiot. Brazil should give up both events or have them taken away. Brazil only wants to rip off the people of the world. Does it care how many are robbed, wounded or killed? Not as long as it's got their money!
7 Don Miguel (#) Jan 16th, 2014 - 12:13 pm Report abuse
Uruguay is becoming Brazil, Brazil is becoming Argentina, Argentina is becoming Venezuela, and Venezuela is becoming Zimbabwe...
8 ChrisR (#) Jan 16th, 2014 - 01:15 pm Report abuse
@ 7 Don Miguel
“Uruguay is becoming Brazil”

Well, we have all the qualifications:
1) Marxist diehard president who wants to look after the poor by giving them money but NO chance of a job, even if the lazy bastards wanted one; Tick

2) Corruption up to the highest levels – Pluna – the new strip mining project with hush – hush terms; Tick

3) Inflation WAY ABOVE what the “government” claims and SKY HIGH above what the target is; Tick

4) Jobs for cronies of the Stupid Tupa President – Director of toxicology in Maldonado who owned and managed a pizza shop (you couldn’t guess that one in a million years) – The Defence Minister, an alcoholic who has a medal from the argies for saying he would fight for them in the Falklands IF ONLY HE WAS OUT OF PRISON (big mate of Stevie, the Head of the Swedish Tupamaros, membership ONE, but WHO it is, is a secret! Ha, ha, ha.)

5) And the Trump Card – a President who has murdered people, though Dilma says she didn’t know about it, even though she was Leader of the cell that did it, yeah, ‘course darling, WE believe you, NOT. And Pepe now says he should not have done it – so that’s alright then). - Tick
9 Stevie (#) Jan 16th, 2014 - 01:46 pm Report abuse
Brasil is a beautiful nation...

Big hugs to our SA brothers and sisters.

And thank to all MP Anglos that reassures us everyway what amount of trash you lot really are.
I tell all my friends and families to read the misinformation. I might be doing the click monsters a favour, but the truth is priceless.

10 Conqueror (#) Jan 16th, 2014 - 03:32 pm Report abuse
@9 Small point. At what point did Brazil/Brasil become a “nation”? You should research “nation”. Brazil/Brasil doesn't qualify. Common language? Not so's you'd notice. Common culture? Nope. The “common” culture of the Portuguese invaders? Pardo? Black? Asian? Amerindian? Mongrel! Ethnicity/descent? Not really. History? About 1/5th of that of Britain. It's a state. Being generous, it might even be referred to, loosely, as a “country”. Hang on another 400 years and might be thought of as a “nation”. Typical south american. Doesn't understand what words mean. Claims things to which it's not entitled. Lies a lot. Get that, Stevie, you little baby? You LIE a lot. But there are always worthless arses like you in fifth-rate countries. A number get on here. You, of course. Twinky the thoughtless. Margo who likes to associate with Alexander the Great. Although Alexander had courage. Fido the doggie. Hepatia the virus. Are there any malvinista la campora activists with enough guts to go out without masks? Anybody with the ability to actually debate? Certainly not you, Stevie. The exponent of the diversion. The unreferenced claims. The smartass comment. The juvenile.

Just look at your meaningless and worthless assertion. With not an ounce of proof, not a smidgeon of evidence, you follow the path of Hitler. The “Big Lie”. You are beneath contempt.
11 Stevie (#) Jan 16th, 2014 - 04:03 pm Report abuse
The fact that you conq, represent the avant garde of the lot, is something that I forever will be grateful for. Thank you, conq! Keep it up!

12 Condorito (#) Jan 16th, 2014 - 05:49 pm Report abuse
@2 Angry Dutchy
“What poverty reduction in Chile, Peru, and Colombia?”

25 years ago 40% of the Chilean population lived in poverty, today it is 15%

Are you so paranoid you don't believe the numbers. I don't need the numbers, I've seen it change in my lifetime and the changes are dramatic.
13 Anglotino (#) Jan 16th, 2014 - 11:14 pm Report abuse

I didn't bother either Fido because there is no use. I don't deny that all countries in South America have lowered poverty levels. But as my comment says, “inflation eats away at the purchasing power of the poor and common folk in Venezuela, Bolivia, Argentina, Uruguay and Brazil”.

Reducing poverty is all fine, however inflation impacts the poor more than anyone else. So it is better to be poor in Colombia than Venezuala and poor in Chile rather than Argentina.

No need to deflect with US, EU, UK or even Somalia (WTF? Go figure!).
14 Stevie (#) Jan 16th, 2014 - 11:23 pm Report abuse
So, to add up.
Inflation affects the poor.
Mercosur nations have high inflation.
Mercosur nations have lowered the poverty rate.

With your logic, it would seem inflation affects the poor in a positive manner...

On a side note, why do you lot even care about Uruguays level of inflation? Are you doing something about it? No.
Do you live here? No.
Are you planning on going on a shopping spree here? No.
Do you care for the Uruguayan people? No.
Do you lot have a point? No.
Are you actively doing anything at all in your own respective nations in order to improve your own situation? No.
Have your nations experienced inflations of 8%? Yes, and much higher too.
Did that get you chicken pox? No.
Rusty knee?
Bad odour?
Longer eyebrows?
15 Tik Tok (#) Jan 17th, 2014 - 02:22 am Report abuse
Well Stevie I think we should all care for our fellow humans. And it's hard not to notice the short sightedness, self centered importance and ridiculousness of certain Governments eg Venezuela, Bolivia, Argentina, and Brazil who espouse to their people they are succeeding with them in charge, when they are actually wrecking peoples futures through their unsustainable policies. These sorts of Governments are power hungry con artists, blinkered by their ambition to always remain at their citizens and country's expense. All governments around the world have some crazy ideas from time to time, but most not to the extent of some of these socialist bolivar lot.
16 Stevie (#) Jan 17th, 2014 - 02:57 am Report abuse
Well, why not start caring for your own peeple first, or the Afghans, or the Iraqi.
Sending soldiers is a weird way of caring...
Care for your bankers stealing the money of the middle class, decimating it in the process. Care for the cultural division every major city of your is experiencing. Care for all those refugees your bombs, soldiers and drones are confining to despair.
Try caring for the vast consumption of heavy drugs, the radicalisation of your continent and the abuse of the resources of the earth. Care not to dump food in order to uphold prices.
Of the many things you lot could care for, you care for our inflation rates...
17 Tik Tok (#) Jan 17th, 2014 - 03:17 am Report abuse
Coz your lot need the most help!!!
18 Stevie (#) Jan 17th, 2014 - 03:20 am Report abuse
We don't want your help.
In fact, the less you lot seem to help, the better we seem to fare.
Give the islands to the Islanders and go home.
19 Condorito (#) Jan 17th, 2014 - 03:20 pm Report abuse
We care a lot.
We care a lot about disasters, fires, floods, and killer bees.

I particularly care now that Chile is the principle South American investor in Uruguay. That is Chilean pensions invested in Uruguay. So yes we care.

Thanks to Chilean investment you don't have “papeleras del año del ñaupa” like Argentina (Pepe's words not mine).

See, we do care.

You might not want our help, but Pepe does. He has increased foreign participation in Uruguay's economy to record levels ... and he want more!
20 Stevie (#) Jan 17th, 2014 - 03:23 pm Report abuse
Your help?
That would ve Chiles help, and Chile is a sister nation...

Big hugs

21 Condorito (#) Jan 17th, 2014 - 03:44 pm Report abuse
Pepe's not discriminatory like you Stevie.
He wants foreign investment from anywhere.

Big Indian investment lined up for Aratirí - forget the environmental study, ignore the existing laws, bend the rules, but get the money in.

Big hug from the Hindu brothers too.
22 Stevie (#) Jan 17th, 2014 - 04:15 pm Report abuse
Yes, Pepe is great. We love him. Not as much as the rest of the world, but close.
Sometimes people disagree with his decisions though. Normal.
Aratirí being the hardware one to swallow.

Andá a pescar a otro río, Condorito. Sos un libro abierto...

23 Condorito (#) Jan 17th, 2014 - 04:51 pm Report abuse
Is Aratirí hard to swallow because it is Indian money and not Chilean?

Or is there a more profound reason?
24 Stevie (#) Jan 17th, 2014 - 04:55 pm Report abuse
It's the prospect of ending up with good soil being destroyed for generations to come, nothing at all to do with nationalities.
25 Condorito (#) Jan 17th, 2014 - 05:05 pm Report abuse
I'm glad it has nothing to do with nationalities. You seemed to be implying @20 that investment was more welcome from some countries than others.

I won't get in to the mining debate other than to say I am far more sanguine that many. You make a f*cking big hole in the ground and take the ore out. Job done.
26 Stevie (#) Jan 17th, 2014 - 06:26 pm Report abuse
Nah, you seemed to be misinterpretting what I said, maybe.
I never implied anything...
27 Condorito (#) Jan 17th, 2014 - 06:32 pm Report abuse
Yeah, you are probably wrong about that too, as you correctly infer above.
28 Stevie (#) Jan 17th, 2014 - 06:39 pm
Comment removed by the editor.
29 Condorito (#) Jan 17th, 2014 - 06:46 pm
Comment removed by the editor.
30 ChrisR (#) Jan 18th, 2014 - 03:57 pm Report abuse
@ 28 Supa Tupa @ 29 Condorito

Well, having been busy driving to MVD and back five days per week for the last three weeks for my wifes' health I com back to a complete draw between you two!!!

Oh, you are BOTH funny. BIG hugs for both of you, but I don't know who from, it won't be me. :o)
31 Stevie (#) Jan 18th, 2014 - 04:13 pm Report abuse
How petty of you Chris...
That monolingualism really bothers you, doesn't it?

Petty indeed...
32 ChrisR (#) Jan 18th, 2014 - 06:09 pm Report abuse
@ 31 Stevie

It's just that Condorito has usually got far more sense than to get into a slanging match with anybody.

But if you want to be considered petty, that's fine by me.
33 Stevie (#) Jan 18th, 2014 - 06:17 pm Report abuse
I think he tried to make me disagree with my President and he got a bit upset'ish when that didn't work out.
But he walked out in style though...
34 Condorito (#) Jan 19th, 2014 - 12:08 am Report abuse
I hope your lady's health improves and that it is nothing too serious.
On Pepe: I was just praising his bold attempts to get foreign capital in to Uruguay. It is great to see someone who is not too proud to sacrifice ideology in the name of pragmatism. It is what I have always maintained has been done so well here in Chile.

Like you say above, it is ok to disagree with Pepe on issues like the proposed mining investment. He might be moving too fast and too far for many.
35 ilsen (#) Jan 23rd, 2014 - 12:46 am Report abuse
why is VNZLA economy such a mess?
Because the Cabinet is 25% military and 50% of the state governors are too (or from military schools)

The USSR tried it and failed, why or why?

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