MercoPress. South Atlantic News Agency

Uruguay’s April Annualized Inflation above the 7% Target

Clothing and foot wear were peak items

Uruguay’s April consumer inflation reached its highest level in thirteen months and for the second month running was above the 7% annual target, according to the latest report from the Statistics Institute.

The consumers price index in April was 7.35% over a year ago, which means inflation has been speeding for the fourth month running since it closed 2009 at 5.9%. However, in April the rate of increase was the lowest of the last four months, 0.18% over March and below private sector estimates (0.4%) and the Central Bank of Uruguay's poll.

The item with the largest increase in April was clothing and foot wear, 0.13% of the 0.18%, mainly because of the season sales end and the new collection of winter models. Food helped to absorb the impact with lower prices for meats, down 0.8% and particularly fresh vegetables and legumes, which fell a significant 10.9%. Overall the food item was down 0.14%. Housing was up 0.3% pushed by the 1.1% increase in rents. Health and medical care was also up 0.2% and Education 0.14% in April.

In the first four months of 2010, accumulated inflation reached 2.64% compared to 1.25% in the same period a year ago. The April consumer prices index for low income households in Montevideo increased 0.05%, basically because of the increases in clothing, foot wear, housing and medical services.

According to the Statistics Institute from the Economy Faculty (University of the Republic, Uruguay or UDELAR) in Montevideo, a family of four in April needed an income of 25.346 pesos (equivalent to 1.350 US dollars) to face a basic basket of goods and services.