Uruguay: Inflation returns to within the Central Bank's target range in March
April 4, 2018
Consumer prices rose 0.3% in March, below February’s 0.9% increase. The print came in below the Central Bank’s expectation of a slightly stronger 0.5% increase. According to the data released by the Statistical Institute, the increase was primarily driven by higher prices for tobacco and alcoholic beverages, recreation and culture, restaurants and hotels, and education.
In March, inflation reversed the upward trend observed in recent months and moderated slightly. It came in at 6.7%, down from February’s seven-month high of 7.2% As a result, inflation returned to within the Central Bank’s target range of 3.0%–7.0%. Annual average inflation remained stable at 6.1% in March.
Uruguay Inflation Forecast
Panelists participating in the LatinFocus Consensus Forecast expect inflation to close 2018 at 7.3%, which is up 0.2 percentage points from last month’s projection. For 2019, panelists see inflation moderating to 6.8%.
Author: Almanas Stanapedis, Economist