The president of the Central Bank of Uruguay positively assessed that prices have remained within the “corridor” since June 2023.
He National Institute of Statistics (INE) released the latest Consumer Price Index estimates report (CPI), from which it follows that the inflation The year-on-year rate to June was 4.96%, a percentage that, although above the 4.1% accumulated to May, marked its permanence for 12 consecutive months within the target range, after the close of June 2023.
Through an institutional video on the social network X (formerly Twitter), the President of the Central Bank of Uruguay (BCU), Diego Labatpositively valued that the prices remained in the corridor for 1 year, and assured that he is confident that the inflation “consolidate” within the target range (between 3% and 6%) over the next 24 months.
“Today Uruguay “We managed to keep prices within the target for a whole year,” said the official, adding: “We expect this process to be consolidated over the next 24 months.”
Labat recalled that the country has a “long history” of “high inflation”but the BCU set out to achieve a “low inflation” and “permanent” through “a different path,” which involves “more frequent monetary decisions.”
“We seek for people and companies to understand this process and align their expectations of inflation“, said Labat in reference to the dialogue with local economic actors.
The market is optimistic about inflation in the target range for 2 more years
In turn, the latest report of the Inflation Expectations Survey published by the BCU seems to agree with the head of the central bank, since for the next 24 months, the Uruguayan market foresees a median of inflation of 6%, which would keep it at the limit, but still within the upper margin of the target range.
It is worth noting that the simple average expected by economic agents for this period ending in June 2026 is even lower: 5.91%.
Source: Ambito
