Uruguay: Inflation stable in September

Consumer prices increased 0.5% from a month earlier in September, a couple notches slower than August’s 0.7% month-on-month rise. According to data released by the Statistical Institute, the reading was driven by higher transport costs. Food costs, meanwhile, were roughly unchanged from August.

Headline inflation was stable from August at 8.3%, still outside the Central Bank’s 3.0%–7.0% target. Pass-through pressures from the weak peso have contributed to the elevated inflation readings in recent months.

Meanwhile, annual average inflation rose to 7.2% from 7.0% in August, reaching a 14-month high.

Uruguay Inflation Forecast

Panelists participating in the LatinFocus Consensus Forecast expect inflation to end 2018 at 7.7%, which is unchanged from last month’s projection. For end-2019, panelists see inflation moderating to 7.3%, also unchanged from last month’s forecast.