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LatinNews Daily - 06 October 2021

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In brief: Inflation falls in Uruguay as interest rate hiked up

* Uruguay’s national statistics institute (INE) has released the latest figures on the consumer price index (IPC), which show that Uruguay registered inflation of 0.46% in September. This brings annual inflation in the 12 months to September to 7.41%, down from annual inflation of 7.59% in August. Despite this decrease, inflation still remains well outside of the 3%-6% target range set by the government and the central bank (BCU). The release of the September inflation figures coincided with a meeting of the BCU’s monetary policy committee (Copom), which decided to raise Uruguay’s benchmark rate by 25 basis points (bps) to 5.25%. This is the second consecutive rate hike, after the Copom decided on a 50 bps increase in August. In its latest decision, the committee cited a slowdown in the global economic recovery from the coronavirus (Covid-19) pandemic, inflationary pressures appearing to last in the medium term, and signs from other central banks that they are moving away from expansionary policies.