MercoPress. South Atlantic News Agency

Uruguay's inflation within target range

The CPI shifted by -0.03% last month, the INE reported

Uruguay's inflation, as measured by the Consumer Price Index (CPI), registered a monthly variation of -0.03% in August, the National Institute of Statistics (INE) announced on Wednesday in Montevideo.

These results brought the cumulative inflation over the last 12 months down to 4.2%, a decrease from 4.53% in July, the INE also pointed out.

It was the 27th consecutive month that inflation has remained within the Central Bank of Uruguay's target range of 3 to 6%, and it is now very close to the specific 4.5% target set by authorities.

The main categories that saw a decrease in prices were: Clothing and Footwear (-2.12%), with notable drops in men's and women's apparel; * Transport (-0.08%); Food and Non-Alcoholic Beverages (-0.04%), with a decline in red meat and vegetable prices.

Recording minor increases were Recreation, Sports, and Culture (0.03%), and Education Services (0.03%).

The August result of -0.03% was better than the median market expectation of a 0.26% increase. Analysts now project that inflation will be around 4.5% by the end of 2025.

Experts note that the appreciation of the local currency against the US dollar has contributed to lower inflation for imported goods, while a moderation in the prices of non-tradable goods and services has also been observed.