Uruguayan president admits inflation target will not be met

On August 11, Uruguayan president, Luis Lacalle Pou, admitted today that Uruguay would not be able to meet the inflation target included in the Budget, which established a target of 6% by the end of 2022.

“Concerning inflation, we have some parameters in the Budget that are not going to be met,” the president told journalists after an official act in Las Piedras, on the outskirts of Montevideo.

Lacalle Pou assured that “the inflationary process, except in some countries, is regional, worldwide”; however, he pointed out that the government will continue to avoid an increase in prices because “we all know that inflation hits those who have the least”.

Inflation in Uruguay rose to 9.56% in the 12 months ending in July, above June’s record (9.29) and the highest level so far in 2022, according to the latest official figures available.

The Uruguayan government implemented tax exemptions for a few weeks this year to reduce beef, noodles, and baked goods prices.

The Executive Branch set a target for inflation to be below 6% by the end of 2022 and to reach 3.7% by the end of 2024, according to the projections included in the National Budget (2020-2025).

With information from Xinhua