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Uruguayan central bank indicator shows inflation is close to 11% in 12 months

Friday, November 2nd 2012 - 06:33 UTC
Full article 5 comments
Domestic expenditure is expanding above the level of activity  Domestic expenditure is expanding above the level of activity

Uruguay’s central bank said that consumer prices, excluding the most volatile items, have increased almost 11% in the last twelve months to September. Fresh fruit and vegetables, cigarettes and public utility rates are considered ‘volatile prices’.

“The inflationary tendency as well as inflation expectations generates concern at the Central bank since the gradual convergence of inflation to the target-range (between 4% and 6%) demands that expectations from agents involved in influencing prices act in the same way”, said the Monetary Policy report for the third quarter.

The bank said that “domestic expenditure continued to grow above the level of activity, propped mainly by private consumption. This behaviour in so far it generates pressure on demand above a level of GDP which is closing in to its capacity limit, constitutes an element of concern in an inflationary diagnosis”.

In the nine months to September the consumer prices index reached 8.64%. To determine how much is seasonal or persistence of high prices, economists tend to exclude some items from the CPI basic basket, which are the most volatile or depend from government administrative decisions and thus givers a clearer picture for analysis.

The Uruguayan central bank ‘exclusion indicator’ subtracts from the CPI the evolution of prices of fresh fruit and vegetables (exposed to great variations because of season and climate reasons); of administered prices (public utilities rates and others fixed by the government such as the price of milk and health insurance) and cigarettes. This indicator since last March is showing a “growing tendency close to 11% in the twelve months to September” said the central bank in its report.

Categories: Economy, Uruguay.

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  • British_Kirchnerist

    So not just an Argie problem...

    Nov 02nd, 2012 - 10:55 am 0
  • ChrisR

    Inflation is a scourge brought about by monopolistic companies having free rein to put up prices. And who owns the monopolies: the government of course!

    Wealthy immigrants (such as us) can cope but the ordinary person is really starting to struggle.

    AG has stolen so many companies that they will soon be adding to the 30% inflation AND lack of performance: YPF for example.

    No, I would rather have 11% and the country a free democracy unlike your MBOA and her idiotic rants killing AG.

    Pepe needs to tell TMBOA to fcuk off and leave us in peace.

    Nov 03rd, 2012 - 11:35 am 0
  • Guzz

    Pepe has no contact with Tic Molested Brits Occulting Abuse, but you are right, he should do that...

    Nov 03rd, 2012 - 12:49 pm 0
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