Inflation in Uruguay is 7.41% and is still outside the government’s target range

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Montevideo, Oct 5 (EFE) .- Inflation in Uruguay stood at 7.41% in September -a little below the 7.59% in August-, which means that it still remains outside the target range established by the Government led by the center-right Luis Lacalle Pou, which ranges from 3 to 7%.

This is indicated by the latest report of the Consumer Price Index (CPI) of the National Institute of Statistics (INE) published this Tuesday in which it is indicated that there was a monthly variation of 0.46% and that, so far in 2021 , the accumulated variation is 6.69%.

The INE also maintains that the main incidences in the monthly variation of the index come from the divisions of Food and Non-Alcoholic Beverages by 0.15%, Housing by 0.05% and Restaurants and Hotels by 0.13%.

In addition, the letter details some of the key points in the increases such as meat -mainly whole chicken, which increased 5.49% – as well as the increase in the rental price of housing by 0.50% or the increase of drinks outside the home of 1.24%.

Regarding the inflation figure from the September report, the Monetary Policy Committee of the Central Bank of Uruguay (BCU) issued a statement this Tuesday in which it states that the figure is still “above the ceiling of the target range” but that inflation continues “its convergence to the objective”.

In this sense, the Committee “considers it necessary to consolidate the process of reducing inflation expectations” in a scenario that shows an incipient recovery and a “gradual exit from the most expansive phase of monetary policy.”

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“This gradual process is expected to continue in the remainder of 2021, always considering the reaction of inflation expectations and the development of the health and economic situation,” the document emphasizes.

Finally, the BCU board concluded that “as long as there are no setbacks in health matters” the priority of monetary policy will focus on “driving inflation expectations” to a range of 3 to 6%.

(c) EFE Agency

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