Investor Presentaiton
Inflation is trending down, mostly driven by the tradable component;
3 Central Bank expects headline inflation to revert within the target
Tradable and non-tradable inflation (2)
band
by 2023Q3.
Central Bank's projected inflation path and inflation
(YOY, in %)
14
10
(YOY, in %)
12
-Tradable inflation
Non-tradable
inflation
D
9,4
10
8
expectations (2)
6
5,5
Inflation target band
Inflation target band
4
Central Bank's
projected
Inflation path as of
December 2022
Year-end Inflation
Expectation
7,1
6,6
2
2
Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23
Dec.-19
Dec.-20
Dec.-21 Dec.-22
Dic.-23
Dec.-24
(1) Source: Central Bank of Uruguay. Tradable inflation excludes fruits and vegetables, while Non-Tradable inflation excludes administered prices (such as utility bills and cigarettes).
(2) Source: Central Bank of Uruguay, Quarterly forecasts of the baseline scenario as of December 2022. Median inflation expectations based on Central Bank's market survey as of January 2023.
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