MercoPress. South Atlantic News Agency

Uruguayan authorities project 4.9% inflation for 2024

The Committee bringing together the Economy Ministry and the Central Bank reviewed the evolution of inflation, the expectations of all economic operators, and the projections for the monetary policy

Uruguayan authorities forecast a 4.9% inflation for 2024 while the target range will remain between 3 and 6%, the Macroeconomic Coordination Committee reported in Montevideo.

At its last meeting, the Committee bringing together the Economy Ministry and the Central Bank reviewed the evolution of inflation, the expectations of all economic operators, and the projections for the monetary policy. At the end of 2025, the consumer price index (CPI) is expected to grow by 5.3%, it was also explained.

Inflation is expected to remain within the range throughout the period, according to a statement issued after the meeting in which the functioning of the inflation targeting regime was positively assessed, whereby a target range has been defined and the interest rate has been used as a monetary policy instrument. This regime has allowed the sustained increase in prices to remain within the range and agents' expectations to converge towards it.

Regarding Uruguay's economic activity, a recovery of dynamism is expected in the next two years. The favorable evolution would be led by the recovery of exports and household consumption, the statement said.

The country's coffers are also expected to remain within previous assessments “despite the lower nominal collection resulting from a year of low activity due to the drought and the drop in inflation, which has a negative impact on government revenues, but with a positive impact for the general population.”