Uruguay: Inflation stable in November
December 4, 2014
In November, consumer prices rose 0.15% over the previous month, marking a seven-month low. November’s print came in well below the 0.59% increase tallied in October and undershot the 0.35% rise the markets had expected. According to the Statistical Institute, November’s reading was driven by lower prices for food and non-alcoholic beverages, as well as for gas and electricity. Conversely, clothing, housing and alcoholic beverages registered higher prices compared to the previous month.
Annual inflation remained unchanged at October’s 8.1% in November, marking the first month since March in which annual inflation was stable. Annual average inflation inched up to 9.0% in November from 8.9% in October. Despite remaining stable in November, inflation is still well above the Central Bank’s target range of between 3.0% and 7.0%.
The Uruguayan peso had hovered around 24.00 UYU per USD in October, and reached a low of 23.55 UYU per USD on 27 November. Since then, the local currency has gained ground, trading at 24.07 UYU per USD on 4 December.
Author: Cecilia Simkievich, Economist