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Uruguay: Inflation falls to over one-year low in July
Latest reading: Inflation inched down to 4.5% in July from June’s 4.6%, marking the weakest inflation rate since May 2024. Moreover, this was the fourth consecutive decline, confirming a downward trend toward the midpoint of the Central Bank’s 3.0–6.0% inflation target range. The downtick was due to softer price pressures for housing and utilities plus transportation. In contrast, food costs rose at a faster clip.
Accordingly, the trend pointed down mildly, with annual average inflation coming in at 5.1% in July (June: 5.2%).
Lastly, consumer prices increased 0.05% in July over the previous month, rebounding from June’s 0.09% fall.
Panelist insight: Commenting on the outlook, EIU analysts stated:
“We expect disinflation to be gradual […] because the government will raise minimum salaries, pensions and wage increases in collective bargaining agreements […]. Upward risks to Uruguay’s inflation dynamics include adverse climate conditions, such as a drought, which would lead to a rise in price pressures at some point in the forecast period.”
