Uruguay’s inflation rate hit 4.11% in August. This stays within the government’s goal of 3% to 6%.
A report came out on Tuesday showing a 0.17% change for the month. The yearly change so far is 3.58%.
Last year, in the same month, the rate was 9.54%. The report also broke down changes by category.
Food and non-alcoholic drinks fell by 0.74%. Clothing and shoes dropped 2.07%.
However, some items got pricier. Alcoholic drinks and tobacco rose 0.54%. The cost of housing increased by 0.38%.
Furniture saw a 0.46% hike. Healthcare went up 0.6% and travel rose 1.01%.
In other sectors, prices also increased. For example, communication costs grew by 0.66%. Leisure and culture went up 0.44%.
Education costs rose 1.49%. Eating out became 0.24% more expensive. Financial services saw a 0.38% hike. Personal care expenses grew 0.78%.
Uruguay has a history of battling inflation. In the 1980s, the country saw hyperinflation. Since then, fiscal policies have focused on stability.
The central bank often uses interest rates to manage inflation. However, the COVID-19 pandemic posed new challenges.
The government used stimulus packages to boost the economy. This led to concerns about rising prices.
Yet, the country has managed to keep inflation within target. The latest data is a sign of economic resilience.
Analysts see it as a positive trend for consumer confidence.