The government considers the inflation rate to be its main economic challenge. In the 12 months to June 2011, the rate was 8.6%, well above the officially targeted annual rate of between 4% and 6%. Fitch, an international credit ratings agency, concurs with this view and has indicated that recalcitrant inflation is one of the main reasons Uruguay is denied an investment grade rating for its foreign debt. Fitch raised its rating on Uruguay to one notch below investment grade at the beginning of July.
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