Uruguay: inflationary pressures across CPI measures

While Uruguay has a comparatively high inflation rate, it generally managed to avoid price pressures during the pandemic, unlike most of the emerging world.

However, recent supply-chain difficulties, coupled with turmoil in international markets due to the Russian invasion of Ukraine, represent a serious challenge to the Central Bank's authorities disinflation plans.

Core inflation, excluding volatile foods and regulated prices (fuels, electricity, healthcare premiums, etc.), has returned to its 2020 average of 9% YoY.

These pressures are largely explained by tradable prices, which are running at 9.6% YoY, up from 5.8% less than a year ago.

Drilling down another level, it appears that transport (which includes fuel prices) and food are the main drivers of the recent uptick in inflation.