Inflation in Uruguay accelerated in March, reaching 9.38% year-on-year

RIO DE JANEIRO, BRAZIL – Inflation in Uruguay accelerated in March. The Consumer Price Index (CPI) stood at 9.38% year-on-year, according to the National Statistics Institute (INE).

The indicator rose from 8.85% in the 12 months to February and from 8.15% in January, when the 6% target range set by the Central Bank of Uruguay was reached from September.

The monthly change was 1.11%, INE reported, higher than the 0.87% expected by analysts responding to the latest Central Bank of Uruguay (BCU) expectations survey. However, food and beverages were the most affected.

The BCU’s inflation expectations survey, released on March 29, showed an upward revision in expected inflation through the end of the year. The median respondent expected inflation to be 7.9% in December, compared with median expectations of 7.1% in February and 7.0% in January. For the monthly change in March, the median respondent expected an increase of 0.9%.

Against the backdrop of rising international commodity prices and an increase in fuel prices, the government resorted to various instruments to lower the consumer price index. The measures, some of which are not yet in force, have not yet affected the indicator. Analysts expect inflation to continue to rise at least until May.

Based on data provided by INE, the largest impact on the monthly change in March was explained by food and non-alcoholic beverages (0.68), restaurants and hotels (0.10), miscellaneous goods and services (0.07), transport (0.06), leisure and culture (0.05) and education (0.04).

Food and non-alcoholic beverages increased by 2.43%. There, the increase in vegetables was 5.90% and was driven by tomatoes, tomato paste, peppers, pumpkin, carrots and fresh vegetables. Milk, eggs and cheese saw a 4.24% increase.

The INE report noted the increase in prices of ordinary whole milk, mozzarella cheese and eggs. Meat, on the other hand, increased by 2.32%.

In other goods and services, it is worth noting the increase in personal care items and in the catering and hotel sector in fish, meat and pastry. In the transport sector, there was also an increase of 2% in gasoline and 1.98% in diesel.

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