MercoPress. South Atlantic News Agency
Uruguay’s inflation in April eased for third month running, but remains above target
The central bank target for 2013 is 6% and the basic interest rate stands at 9.25% Inflation in Uruguay during April slowed down for third month running, according to the latest release from the country’s Statistics Office, INE. Consumer prices in the fourth month of the year climbed 0.45% with inflation in the last twelve months reaching 8.14%, compare to 8.54% in March.
However this remains above the Central bank target of 6% for the twelve months of 2013.
Food, clothing and housing were the three items which most contributed to April’s inflation. But more moderate external prices plus a more stable foreign exchange rate helped in the opposite direction.
Inflation last January had soared to 1.9%, but then decelerated to 0.99% in February and 0.66% in March.
“The tendency for core inflation continues to slide: in April it was 7.8% compared to 9.3% last September, so we are facing an interesting process”, said economist and former minister Javier De Haedo.
Prices continue to be a priority for the government of President Jose Mujica who has seen the budget surplus climb to almost 3% of GDP, although lately it has eased. But the massive influx of foreign capital interested in Uruguay’s high interest rates, precisely to combat inflation is also playing against government plans.
Uruguay has also managed investment grade from the leading risk-rating agencies which makes investments in the country even more attractive.
The Central bank Monetary Policy committee raised the interest rate 25 basic points to 9.25% in December but last March decided to keep it unchanged.
However JP Morgan estimates the bank will increase the rate 25 basic points and forecasts 8% inflation for 2013. Last year Uruguay’s inflation rate reached 7.48%, which was also above the bank’s target of 4% to 6%.
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Read all commentsI love these figures that are bandied about: I think they must pluck them out of the air.
May 08th, 2013 - 05:46 pm 0The figures from my household budget spreadsheet for May 2012 – April 2013 show the following:
January 2013
Car tax = +11.2%, bike tax = +6.1%, council tax = +9.2% All paid to the Intendencia.
Electricity went up FOUR times in the 12 months.
UTE makes BMC and Longbridge look like a well run a business. The directors ALL need removing from office, especially the person responsible for safeguarding future electricity supplies because he isn’t.
Water only a minor increase.
Gasoline supplies No increase BUT given the OPEC fall in price to under $100 barrel it should have gone DOWN. Some hopes.
I can afford these rises but I do feel for the local people with young families and / or older dependents to provide for having to work in this economy.
Well Chris, if it doesn't suit you and your demands, you could always pack your stuff and move back to the Wonder of a country you left to start with.
May 08th, 2013 - 09:05 pm 0Or you could also find a third alternative to move to and complain about...
2 Stevie
May 09th, 2013 - 04:41 pm 0I am getting MORE than pissed off when you do NOT read my posts or just post crap yourself to deflect the point.
Have you READ THIS post?
I am NOT complaining (and certainly NOT for myself) I am pointing out the fcuking RESLITY you moron. read my LAST sentence: it's about the plight of the locals.
AND WTF has it got to do with you anyway you fcuking SHYSTER? YOU don't live in Uruguay I DO!
So take your post and shove it up your cuelo.
ARE WE CLEAR ON THAT NOW!
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