Uruguay: Inflation inches down in October
Latest reading: Inflation edged down to 5.0% in October from September’s 5.3%, marking the joint-weakest result since May and inching closer toward the midpoint of the Central Bank’s 3.0–6.0% target range. Looking at the details of the release, weaker price pressure for transportation plus housing and utilities drove the result. That said, stronger price pressures for food and non-alcoholic beverages plus a milder drop in costs for clothing and footwear provided upward pressures.
Meanwhile, the trend was unchanged, with annual average inflation coming in at September’s 4.8% in October.
Lastly, consumer prices increased 0.33% over the previous month, slowing down from September’s 0.37% increase.
Panelist insight: Commenting on the reading, Itaú Unibanco’s Mario Mesquita stated:
“We have lowered our YE24 inflation forecast to 5.0% (from 5.3%) due to lower prints and the prospect of a seasonal electricity tariff reduction in December. However, we have revised our YE25 forecast upward to 5.8%, from 5.5%, in light of the weaker currency.”