MercoPress. South Atlantic News Agency

Uruguay's YoY inflation continues to fall

July's figures were below market expectations

According to the National Institute of Statistics (INE) report published Tuesday in Montevideo, Uruguay's interannual inflation rate in July 2025 was 4.53%, a slight decrease from 4.59% in June. This marks the 26th consecutive month that inflation has remained within the Central Bank's target range of 3% to 6%.

The monthly variation for July was a modest 0.05%, driven by increases in categories like Food and Non-alcoholic Beverages and Restaurants, which were partially offset by decreases in others like Clothing and Footwear and Housing. The cumulative variation for 2025 stood at 2.79%.

Core inflation, which excludes fresh food and fuel, registered a 12-month variation of 5.25%, with 2.77% so far this year.

According to Economist Aldo Lema, July's figures were “below market expectations,” which were 0.3%. “The almost zero variation in Uruguay's CPI in July was mainly explained by the moderation of core inflation to a seasonally adjusted monthly rate of 0.1%,” he wrote.