Uruguay’s inflation rate in 2023 showcased a mix of stability and challenges, impacting various sectors of the economy.
According to MercoPress, In 2023, Uruguay experienced an inflation rate of 5.1%, according to reports from Montevideo. This marked the lowest inflation rate in the country in 18 years, a significant achievement attributed to stable prices in household goods, transportation, and communications by the National Institute of Statistics (INE). In comparison, the Consumer Price Index (CPI) had only grown by 4.9% in 2005.
While the inflation rate fell within the target range of 3 to 6% set by the Uruguayan Central Bank, some analysts are predicting that inflation could exceed 6% in 2024. The upward pressure on inflation was primarily driven by increases in food prices at 6.2% and housing costs at 6.6%. In December, the year-on-year inflation rate in Uruguay reached 5.11%, rising from the previous month’s rate of 4.96%.
The INE report for December 2023 highlighted a monthly CPI variation of -0.11%, with an annual inflation rate of 5.11%. Lemon prices surged by 15.91% in December, while Food and Non-Alcoholic Beverages saw an average increase of 0.98% and Meat and by-products increased by 0.39%. Other fruits also experienced significant price adjustments, with Oranges rising by 9.08%, Apples by 12.21%, Pears by 10.37%, and fresh Strawberries by 22.42%, while peaches dropped by 24.81%.
Additionally, the prices of Lettuce increased by 13.14%, fresh or refrigerated Spinach by 21.76%, Tomatoes by 10.79%, Carrots by 4.80%, and Potatoes by 4.12%. On the other hand, sweet potatoes and onions saw decreases of 13.90% and 4.88% respectively. The inflation trends in Uruguay reflect the ongoing challenges faced by the economy and the impact on consumer prices.
As Uruguay navigates fluctuating inflation rates, analyzing trends and preparing for potential increases becomes essential for economic stability.
