European Central Bank President Jean- Claude Trichet, who chaired a meeting of central bankers of the world's leading nations warned on Monday about rising food prices and significant inflationary risks.
Uruguay's exports increased 59.6% last April compared to the same month a year ago, with the whole expansion for the first four months reaching 44%, according to the latest statistics released by the government funded institution Uruguay XXI.
Uruguay, South America's leading exporter of rice and among the world's top eight, traditionally has been forced to sell overseas 95% of its high quality grain given the country's scarce population and low consumption.
Uruguay's consumer price index, CPI, increased 0.33% in April the best performance so far in 2008 and the lowest since April 1962. This means that CPI in the first four months of the year reached 3.2%, (annualized 9.92%) and below the same period in 2007 (4.98%), according to the latest release from the national Statistics Institute.
Public utilities rates subsidies which have been applied since September 2007 to help contain inflation have cost the Uruguayan treasury 185 million US dollars, equivalent to 0.8% of the country's GDP. Prices are estimated to have moderated 1.5% on an annual basis.
London's luxury rental market, already strong and becoming stronger, is getting a further boost from an unexpected source: the U.S. credit crunch.
In a report limited to top clients US Citibank forecasted last week that Argentina probably faces an inflation acceleration accompanied or preceded by a flight of capital, leading to a forced landing, if the current administration refuses to take measures to contain inflation.
A United States judge granted on Wednesday a request by bondholders suing Argentina to extend a freeze on as much as 16 billion US dollars in sovereign bonds issued by the country and which now held by the Depository Trust Co. in New York.
The European Union on Wednesday approved a German bailout of WestLB, a regional bank that lost billions from US mortgages gone badly. Germany can now put up 5 billion Euros to help the bank ride out its exposure to the subprime banking crisis.
Inflation has become the main concern of a majority of Argentines, leaving aside other issues such as insecurity and poverty according to the latest public opinion polls from Ibarometro and Hugo Haime & Associates, released this week in Buenos Aires and which refers to the second half of April.