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Uruguay Inflation February 2018

Uruguay: Inflation increases to above the Central Bank’s target range in February

Consumer prices increased 0.9% from the previous month in February, a notable deceleration from the 2.7% jump observed in January. The print came in just above the Central Bank’s expectation of a more modest 0.8% increase. According to the data released by the Statistical Institute, the increase was primarily driven by higher prices for food and non-alcoholic beverages, housing and education.

In February, inflation continued to trend upward, rising for the seventh consecutive month. It came in at 7.1%, the highest reading in the last 12 months (January: 6.7%). As a result, inflation surpassed the upper limit of the Central Bank’s inflation target of 3.0%–7.0%. Meanwhile, annual average inflation remained stable at 6.1% in February, following eighteen consecutive months of decline.

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