Uruguay: Inflation rises in February
March 4, 2013
In February, consumer prices increased 0.99% over the previous month, which was down from the 1.90% rise seen in January but in line with market expectations. The reading was largely driven by an increase in the housing sector - owing to a rise in tariffs set by the publicly owned water and electrical companies OSE and UTE in February - as well as in the food and non-alcoholic beverages sub-category. Price increases were also strong in education due to the start of the schooling period.
Annual headline inflation rose from 8.7% in January to 8.9% in February, which is well above the Central Bank's target range of 4.0%-6.0%.
FocusEconomics Consensus Forecast participants expect inflation to moderate to 7.8% by the end of the year, which is up 0.3 percentage points from last month's projection. For 2014, panellists anticipate that inflation will increase to 7.1% by year-end.