Uruguay: Inflation recedes to six-month low in July
August 3, 2016
In July, consumer prices increased 0.4% over the previous month, matching June’s reading. July’s print undershot expectations of a 0.82% price increase recorded in the Central Bank’s monthly survey. According to the Statistical Institute, July’s result was mainly driven by higher prices for food and non-alcoholic beverages as well as restaurants and hotels.
Inflation has been moderating for a second consecutive month to a reading of 10.1% in July (June: 10.9%), after hitting a 12-year high in May. July’s print marks the lowest level in six months. Nevertheless, inflation remained well above the Central Bank’s target range of 3.0%–7.0%. Annual average inflation inched up from 9.9% in June to 10.0% in July, marking the highest reading in 12 years.