MercoPress. South Atlantic News Agency

Uruguay’s annual inflation in September reached 9.02%; minister confident it will be brought down

Fuel prices and transport had the largest impact during September

Uruguay’s consumer inflation soared 1.36% over August in September boosted by increases in energy and fuel, transport, milk and other basic items, according to the latest release from INE, the government’s data office. This means inflation in the last twelve months climbed to 9.02% from a month ago (8.86%) and 8.2% in the first nine months of 2013.

The government’s target for the financial twelve month year is inflation between 4% and 6%, but has consistently missed the mark, despite monetary and credit efforts to contain the tendency.

The most significant item in September was transport, up 3.13% because of the new fuel prices. The second strongest increase was Food and beverage, 2.23%. In this basket bakery goods were up 1,25%; dairy produce, 1.32%, meats, 1.6% and fresh fruit, vegetables and legumes, 4.56% and 6.41% respectively.

Housing was up 0.92% supported by a 1.22% increase in rent and2.59% in door tax. Cooking gas meantime was up 6.19%, in line with the almost 10% increase in public utilities.

In August the consumer prices index was 1.04%. According to INE twelve month inflation to July was 8.75%; similarly to August, 8.86%.

Septembers’ inflation was far above the Central Bank survey of expectations among experts and economists, with an average of 0.85%.

Economy and Finance minister Fernando Lorenzo has repeatedly said, the last time only two weeks ago, that inflation at the end of 2013 will be very close to last year’s, at 7.48%.