Uruguay: Inflation drops further in June to over 11-year low
July 5, 2017
In June, consumer prices grew 0.2% from the previous month, up from May’s 0.1% rise. The result undershot the Central Bank’s expectations, which envisaged a 0.5% monthly increase according to the latest survey. According to the National Statistics Institute, the rise was driven by higher prices for housing, health, and goods and services, which more than offset lower prices for food and non-alcoholic beverages, and clothing and footwear.
Inflation in June came in at 5.3%, down from 5.6% in May, marking the lowest result since December 2005. Nevertheless, it remains within the Central Bank’s target range of 3.0-7.0%. Annual average inflation fell from May’s 8.1% to 7.7% in June–the lowest result in over four years.
Author: Nihad Ahmed, Economist