According to the INE survey, economic agents expect a price increase of 8% per year this year, 0.5 percentage points less than the last report.
He National Statistics Institute (INE) released today his Business Expectations Survey regarding the evolution of inflation. For this 2023, the inflation expectations of businessmen fell from 8.5% to 8%, according to the median of the responses.
Businessmen’s inflation expectations rose to 9% per year compared to the end of last year, when effective inflation reached almost 10%. From that moment until now there has been a gradual reduction, but they have never been below the current 8%.
From the Central Bank of Uruguay (BCU) It has repeatedly been stated that one of its objectives is not only to reduce effective inflation, which is recorded by the CPI, but also to reduce inflation expectations, both among analysts and businessmen, the latter being key players in price formation.
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The inflation expectations of the businessmen have shown themselves particularly resistant to lower and they are clearly above target range of inflation that the monetary authority has (from 3% to 6%).
In the INE survey, employers were also asked about their expectations regarding the evolution of costswith the median of the answers placing that evolution in the 9% annual, value similar to that registered the previous month.
Source: Ambito
