The National Statistics Institute of Uruguay (INE) released inflation numbers for October, showing a 0.64% m/m gain (0.3% m/m in September), taking yearly inflation up to 7.02% y/y from 6.32% y/y, and year-to-date inflation to 6.45% y/y from 5.77% y/y. Yearly inflation in October rested above the upper target set for this year of 5% +/- 2%. The spike was mainly led by food prices, which gained 1.68% m/m from 0.31% m/m, affected by higher meat and fruit prices. Apparel, although decelerating from last month, continued to advance strongly at 1.49% m/m from 1.71% m/m in September. On the downside, transport prices anchored further inflation growth with a 0.30% m/m contraction after September’s 0.02% m/m gain.
Uruguay continued to grow robustly in Q2 2010, with a 10.4% y/y growth, outperforming Q1’s 8.8% y/y expansion and averaging a 9.6% y/y growth in H1 2010. On a seasonally adjusted basis, Uruguay expanded by 2.6% q/q, at a seasonally-adjusted annual rate (SAAR) of 10.9%, after Q1’s 2.03% q/q SA growth (8.4% SAAR). Strong domestic demand and recovered external accounts led the expansion in Q2. Fixed capital investment jumped to 16% y/y from 6.6% y/y in the last period, led by a 24% y/y increase in private investment, balanced by a 4% y/y contraction in public investment. Consumption jumped over 2.5 points to 10.7% y/y, while government spending shrunk a point to 4.6% y/y. External accounts also gained terrain, with exports surged by 17.3% y/y and imports 17.5% y/y from 3.9% y/y and 10.6% y/y, respectively.
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