Uruguay's consumer prices' index increased 0.82% in October, and 8.67% in the last twelve months but 9.09% in the first ten months of the year, according to the latest release from the country's Stats Office, INE.
Prices in October 0.82% eased compared to September when they soared 1.36%, but were above the average of estimates which the Uruguayan Central bank polls regularly.
Economy minister Fernando Lorenzo had advanced in mid September that annual inflation would be in the range close to last year's, 7.48%, but above the annual target of 4% to 6%. However Central bank president Mario Bergara has admitted fears of an 'inflationary spiral'.
Food and non alcoholic beverage climbed 0.81% in the month with sub-groups 'bread and cereals' up 1.31%; meats, 1.3%; 'fruits' 2.58%: legumes and vegetables, down 3.29% and 'non alcoholic beverages' 1.67%. Clothing and footwear, up 1.36%, Housing, 0.72%; healthcare 0.38%; transport, 1.06%; restaurants and hotels, 1.09% and Leisure, 2.50%.
The difference between the ten month (9.09%) and twelve month inflation (8.67%) can be explained because in November/December last year the Uruguayan government reduced power rates to ensure the index did not reach two digits. Something similar has been announced for the two last months of 2013.
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How about the currency? With an inflation like that since years the UYU/USD exchange rate belongs into the area of 30+ and not 21.50 where it currently stands! The Urugayan economic policy is just a joke in my view!Nov 05th, 2013 - 10:50 am 0