Inflation in Uruguay remains in Zen mode: 4.2% over the past 12 months through August, or three months nailed down, almost glued to the Central Bank's target of 4.5%. And if you look at the tolerance range (between 3% and 6%), this is the 27th consecutive month that inflation has remained there, as steady as a statue of a dog.
And, mind you, it's been falling for five months straight. Look at the drop: in March it was 5.67%, then 5.36% in April, 5.05% in May, 4.59% in June, 4.53% in July, and now 4.2% in August. It's becoming a habit, isn't it?
And why did it drop this time? Simple: last year's August issue, which had risen 0.29%, came out of the calculation, and this August's issue, which fell 0.03%. In other words, a bit of statistical luck also helped.
The current 4.2% is the lowest figure since May 2024, when it stood at 4.1%. And if you look at the first eight months of the year, the price increase was 2.75%, the lowest figure for that period since 2001, when it was 2.61%. In other words, it's no small feat.
Where did prices rise or fall in August? According to the INE (National Institute of Statistics and Census), the most significant increases were Food and non-alcoholic beverages (-0.04 points), Clothing and Footwear (-0.05), Transportation (-0.08), Recreation and culture (+0.03), and Education services (+0.03).
In Food and Non-alcoholic Beverages, prices fell 0.16% in August . There were sharp declines in vegetables, such as spinach (-15%), tomatoes (-19%), and zucchini (-20%), as well as in meat, such as pork butt (-1.9%) and chicken on the bone (-5.2%). However, note that fruits and nuts rose 0.71%, and cereals, 0.85%.
Clothing and footwear fell 2.12%, especially women's clothing (-4.6%) and women's footwear (-3.6%), a typical seasonal change.
In Transportation, prices fell 0.72%, mainly because airfare prices plummeted (-14%). However, interdepartmental and suburban transportation prices increased 3.3%.
Recreation, sports, and culture increased by 0.54%. The most significant increase was in package tours abroad (up 2.25%). Education increased by 0.71%. The increases in primary (up 0.77%) and secondary (up 0.86%) were particularly notable.
So, in short, inflation remains somewhat dormant, with vegetables and clothing prices on the decline, but with occasional increases in other categories. For now, the Central Bank of Mexico can breathe easy.
