Macroeconomic Forecast Uruguay

August 2007 | Macroeconomic Forecasts

The consumer price index inflated by 8.03% y-o-y in July, marking only a marginal reduction from June's 8.05% outturn. Adverse weather conditions which have led to food shortages, and high levels of public spending, have been major causes of the recent upturn in inflation. Booming domestic demand and high energy prices have also added to inflationary pressures. While we expect inflation to come down steadily in the second half of the year, we see it remaining high, and as such we have upwardly revised our year-end forecast to 7.4%, from 6.3%

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