Uruguay: Inflation stabilizes in December
January 3, 2014
In December, consumer prices fell 0.72% over the previous month, which was the lowest reading since December 2012. This figure contrasted the 0.20% increase recorded in November and exceeded market expectations of a 0.40% decline. The decline in the monthly reading was mainly due to a sharp decrease in housing prices. The effect was mainly prompted by the national electrical company, the UTE, introducing a 20% reduction in electricity tariffs.
Meanwhile, annual inflation stabilized at 8.5% in December, which was the same level tallied in November. Despite the stabilization in the annual reading, inflation remains well above the Central Bank's target range of 4.0%-6.0%.
LatinFocus Consensus Forecast participants expect inflation to moderate to 7.9% by the end of 2014, which is unchanged from last month's projection. For 2015, panelists see inflation at 7.0%.