The INE data registered a monthly variation of 0.46% and confirmed the slowdown in the upward pressure on prices.
The inflation slowed down again Uruguay in June and the Consumer Price Index (CPI) registered a monthly drop of 0.46%, according to the latest report from the National Statistics Institute (INE). The categories of Food and Non-Alcoholic Beverages and Transport They were the ones that presented the greatest decreases compared to May.
This is a good sign for the measures and policies followed by the government in order to slow down inflation. Even more so if one considers that market expectations pointed to a 0.3% increase for June, and that the effective indicator was located well below. Thus, the pressure on prices slowed down from 7.1% to 5.98% YoY. So far this year, the CPI accumulates a rise of 3.78%, but it begins to adjust within target range raised by the authorities, between 3% and 6%.
This is good news not only for consumers in general —given the lower price increase— and for the government —because of the visible success of policies in this regard—; but also for the sectors that demand a higher dollar: with the positive inflation data, the possibility that the Central Bank of Uruguay (BCU) lower interest rates at the meeting of the Monetary Policy Committee (Copom) that it will take place tomorrow becomes almost a given.
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Food and Transportation down, Housing up
the heading Food and Non-Alcoholic Beverages was one of those with the greatest downward variation, with a 1.31% and an incidence of 0.35% in the general indicator. Within it, the fruit, who saw their prices reduced by 7.40% —after a drop of 7.67% in May—, mainly driven by a drop in the value of strawberries of 31.51%, of lemons by 27.69%, and oranges with 21.02% .
the subdivision “Vegetables, tubers and legumes” also showed a significant decrease, with a 8.38% less than last month, where, in the breakdown, a drop of 23.75% in the price of tomatoes, 23.21% in carrots and 18.61% in lettuce stands out.
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Transport was the item that fell the most compared to last month, with a decrease of 1.60% and an incidence of 0.17% in the CPI. Diesel and gasoline presented both discounts (7.02% and 2.77%, respectively), although plane tickets registered the greatest variation in this regard, with a fall of 7.61%.
On the other hand, the category “Housing, water, electricity, gas and other fuels” increased a 0.37% and had an upward incidence of 0.05%. In it, the increases in rents (0.52%) and sanitation fee (4.01%) stand out.
Source: Ambito
