LatinNews Daily - 06 May 2021

In brief: Inflation falls into official target range in Uruguay

*Uruguay’s national statistics institute (INE) has reported that the consumer price index (IPC) increased by 0.5% month-on-month in April and by 6.76% year-on-year. The monthly rate is marginally lower than the 0.57% increase anticipated by economists polled by the central bank, while the annual rate is significantly lower than the 8.34% registered in March. Notably, the annual rate has now fallen to within the official inflation target range of 3%-7% for the first time since April 2018. The INE has attributed the fall in the IPC to low price inflation in the food & non-alcoholic drinks sector (0.19% variation), the clothing & shoes sector (0.07%), transport (0.13%), and the leisure & culture sector (-0.04%). Despite the positive April figures, Isaac Alfie, the director of the national budget & planning office (OPP), has said that the government remains concerned that inflation accelerates in the next few months, as “international inflation is taking hold” with the global price of raw materials once again rising.