Inflationary expectations of businessmen with a slight drop in September

Economy and Business > Price projections

Uruguayan companies project an inflation of 9% for the end of the year and there was a slight moderation for the two-year horizon

Sebastian’s stall

Reading time: –‘

October 07, 2022 at 16:23

Uruguayan businessmen lowered their inflation expectations for the 24-month horizon, relevant for the monetary policy of the Central Bank (BCU). According to the Survey of Business Expectations for September released this Friday by the National Institute of Statistics (INE), businessmen project an inflation of 8% in median for that period, from 8.3% prior to August.

Anyway, the record is two points above the target range set by the Central Bank (BCU) between 3% and 6%.

While, inflation remains at 9% expected for the end of the year and 8.8% for the one-year horizon.

For its part, the inflation expected by the median of analysts in the 24-month horizon rose in September and stood at 7%, according to the BCU survey, that is, 1 percentage point above the ceiling of the target range (between 3 % and 6%) and far from the center of the range (4.5%).

This Thursday the Monetary Policy Committee increased the interest rate by 50 basis points to 10.75% and reiterated concern about the “rigidity” of inflationary expectations, although it also warned about the deterioration of world economic growth.

In the last 12 months ending in September, prices rose 9.95%.

REPORT BUG