Projections in the private sector fell again by 50 basis points in September, according to data from the INE.
Businessmen’s inflation expectations fell to 7%.
Photo: Freepik
The inflation expectations of businessmen revised themselves downwards for the second consecutive month and cut another 50 basis points, reaching a median of 7% for this year, according to the latest report from the INE.
The Business Expectations Survey (EEE) thus reflected that the private sector began a reduction in its projections, while the inflation annual rate is below 4% and remains at its lowest level in the last 18 years.
According to what was revealed by the INE, the median of inflation Not only is it expected at 7% for this year, but business owners estimate that it will remain at the same percentage for the rolling year ending in August 2024, with each cut of 50 basis points.
The private sector also revised expectations for the period September 2024 / August 2025 with a decrease of 0.5%, in which the median is 7.5%. In any case, both values are still far from CPI current and still do not enter the target range of between 3 and 6% proposed by the Central Bank of Uruguay (BCU).
Regarding the expected variation of the costs operations of the companies, the EEA demonstrated stability, remaining at 8% for 2023, aligned with what is expected for the moving year closed to August 2024 and the same period in 2025.
What did Copom say about inflation?
During his meeting on Thursday, in which he reduced the interest rates at 50 basis points, the Monetary Policy Committee (Copom) highlighted the drop in inflation and positively valued “the gradual convergence of expectations towards the target range.”
The authorities of the BCU They project that the CPI “it would remain within the target range throughout the monetary policy horizon, under the influence of a monetary policy that remains in a contractionary phase.”
That is why they anticipated the possibility that the end of the downward cycle of the Monetary Policy Rate, while “expectations finish aligning and credibility continues to be strengthened by remaining within the inflation target range.”
Source: Ambito
