Uruguay inflation rises to 4.68% in September

Uruguay's annual inflation rose to 4.68% in September, exceeding the Central Bank of Uruguay's (BCU) 4.5% target for the second consecutive month. The monthly Consumer Price Index (IPC) saw an increase of 0.54%, driven largely by rising costs in food and beverages, which contributed 0.45 percentage points to the total variation.

Specific price hikes were noted in vegetables—with tomatoes increasing by 48.86%—and meat products, which rose by 2.43%. Conversely, transport costs saw a decrease of 0.54%, aided by falling prices in airfare and passenger transport services. While the core inflation (excluding volatile items like fruits and vegetables) sat at 4.47%, the overall trend indicates sustained upward pressure.

In response to economic conditions, the BCU is focusing on strengthening the national currency and reducing dollarization within the financial system. The central bank's recent reports emphasize the importance of developing domestic currency instruments to improve financial stability and economic development.