The Central Bank of Uruguay released its latest survey, in which analysts expect a CPI within the target range for the next two years.
The inflation expectations of economic agents were reduced in the long term and will remain within the target range for the next two years, according to the latest report from the Central Bank of Uruguay (BCU).
He BCU released its latest survey of inflation expectations, where analysts and specialists anticipated a CPI 5.5% for this year, maintaining its projections from last month.
According to the median of the survey responses, a inflation 0.40% for this month, while the second half of the year would remain around 1.90%. Thus, the annual CPI would be 5.50%, with observations ranging from 4.85% to 6.30%.
Meanwhile, looking ahead to 2025, they predict inflation of 5.90%, a reduction of 10 basis points compared to the last survey, with a minimum response of 5% and a maximum of 6.70%.
The most noticeable change with respect to June occurred at the end of the Monetary Policy Horizon, as economic agents expect an interannual CPI of 5.64%, a drop of 26 basis points, with a wider dispersion of projections, ranging from 4.60% to 7.20%.
Inflation is expected to rise in the coming months
Although the BCU anticipates that the CPI will remain within the target range and experts seem to support this view, inflation is expected to accelerate in the coming months, mainly due to the comparison with the same period in 2023.
It is worth remembering that the annual CPI stands at 4.96%, above the government’s target and rising for the second consecutive month, despite having been within the range established by the monetary authority for 13 months.
Source: Ambito
