MercoPress. South Atlantic News Agency

Uruguay consumer prices climb 1,23% in April

Consumer prices in Uruguay during April advanced 1,23% reaching 4,09% in the first four months of 2004. The Uruguayan Statistics Institute indicated that the increase was mainly because of vegetable and fruit prices influenced by a strong summer drought and the incoming winter fashion in Clothing.

Last January inflation in Uruguay was 2,19%; February 0,02% and in March 0,6%.

Vegetables during April climbed an average of 20% and fruit 15%, while Clothing reached 2,7%.

Uruguayan authorities have targeted an annual inflation in 2004 between 7 and 9%, however most private analysts estimate it will be above 10%.

Analysts argue that oil prices, public utilities rates, tourism had a strong influence in consumer prices this summer and this will continue the rest of the year since presidential elections are scheduled for next October.

Besides unions are pressing for salary raises, international interest rates are expected to climb and the Central Bank monetary policy "should be closely monitored".