Uruguay: Inflation reaches near-decade high in February
March 5, 2014
In February, consumer prices rose 1.66% over the previous month, which was below the 2.44% increase recorded in January. The print exceeded market expectations of a 1.00% increase. According to the Statistical Institute, the monthly rise in consumer prices was mainly driven by higher prices for food and non-alcoholic beverages as well as for household items.
Annual inflation rose to 9.8% in February, which was up from the 9.1% tallied in January and marked the highest value since August 2004. Consequently, inflation remains well above the Central Bank's target range of 4.0%-6.0%.
LatinFocus Consensus Forecast participants expect inflation to moderate to 8.1% by the end of 2014, which is up 0.1 percentage points from last month's projection. For 2015, panelists see inflation at 7.5%.