MercoPress. South Atlantic News Agency

Uruguay’s wholesale prices soared 10.82% in the first quarter of 2011

Livestock prices had the main incidence on the index

Uruguay’s wholesale prices soared in March for the third month running reaching 4.42%, the highest since 2010, reports the country’s Statistics Institute, INE.

This represents an increase of 10.82% in the first quarter of 2011 and 23.3% in the last twelve months.

Uruguayan authorities fear that the wholesale hike could eventually impact on the basic family basket and the inflation rate which points to be far off from this year’s target.

The major influence on the wholesale index came from agriculture prices, which increased 5.21% in March with a 1.89 percentage point incidence in the index. Livestock prices particularly rose 10.55% since abundant rainfall and good pastures have tempted farmers to hold on to their stock. However grains and oilseeds overall dropped 3.53%.

Manufacturing prices increased 4.03% with a 2.53 percentage point incidence in the index pushed by oil and derivates escalation triggered by the Middle East crisis.