Uruguay: Inflation jumps at the outset of the year
February 4, 2013
In January, consumer prices increased 1.90% over the previous month, which contrasted the 0.73% drop seen in December and exceeded market expectations of a 1.10% rise. In addition, the reading marked the highest monthly rise in nine years, largely reflecting a 23.8% surge in electricity prices, as the state owned company UTE terminated its discount policy.
As a result of the monthly jump, annual headline inflation climbed from 7.5% in December to 8.7% in January, which is well above the Central Bank's target range of 4.0%-6.0%.