Uruguay’s consumer price index in August was 0.56%, the lowest increase since the same month in 2005 helping to bring down the twelve-month index to 7.57% from 8.25% and giving the government a relief.
Following on an 8.5% growth rate in 2010, Uruguay’s real GDP continued to expand 6.8% in the first quarter of this year compared with the same period of 2010, according to the Central bank Debt Management Unit.
Uruguay has raised its 2011 economic growth forecast to 6% and its inflation to 7.8%, according to a government document published on Friday. The previous estimate was 4.5% and full year inflation of 6%.
The Uruguayan economy expanded 2.3% in January-March over the previous quarter, which has elevated forecasts for the twelve months of 2011 to a floor of 6.5%. However the Uruguayan government is concerned that consumption again expanded at a higher rate than GDP.
Consumer prices in Uruguay rose sharply again in May, led by steep increases in prices at restaurants and hotels, for housing and for health costs accumulating 8.53% in the last twelve months and 4.34% in the five months of 2011.