Contrary to popular belief, Uruguay’s stubbornly high inflation rate is partly structural in nature and not simply the result of overheated demand. Bringing inflation down permanently will require far-reaching policy reforms, for which we doubt that the current administration has the stomach. Accordingly, we expect headline CPI to remain well above target for the next couple of years.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services