Uruguay inflation rises to 4.68% year over year in September

Uruguay’s year-over-year inflation rose to 4.68% in September, up from 4.55% in August. According to the Consumer Price Index (CPI) published by the National Institute of Statistics (INE), prices rose 0.54% during the month and had increased 4.21% since the beginning of the year.

The figure was above the Central Bank of Uruguay’s (BCU) point target of 4.5%, although it remained within the tolerance range, set at between 3% and 6%. In September 2025, year-over-year inflation was 4.25%.

Food accounts for the largest monthly contribution

Food and non-alcoholic beverages was the category that contributed most to the CPI increase: it rose 1.73% and added 0.45 percentage points to the overall change. Within that division, vegetables, tubers, and legumes rose 5.27%. Tomato prices rose notably (48.86%), as did onions and similar products (25.45%); by contrast, summer squash and zucchini fell 21.52%, and potatoes fell 3.78%.

Meat and other derived products rose 2.43%. The increase in food prices was partly offset by transport, which fell 0.54% and subtracted 0.06 percentage points from the monthly result, mainly due to declines in passenger transport services with a driver and airfares.

Core inflation—a measure that excludes vegetables, fruit, and fuels—was 0.44% for the month and 4.47% over the past 12 months. The CPI for tradable goods rose 3.31% year over year, while the CPI for non-tradable goods and services rose 5.80%.

Monetary policy review was still pending

In August, the BCU kept its monetary policy rate at 5.75%. When announcing that decision, the institution said that inflation projections and expectations pointed to a trajectory aligned with the 4.5% target over the monetary policy horizon. According to information published on October 5, the Monetary Policy Committee and the board were expected to assess a possible rate change on Thursday the 8th; that decision had not yet been announced at the time of the reports.

Inflation was not the only figure cited in the debate. Búsqueda reported that the BCU would also consider economic activity, the local exchange rate of the dollar, and external factors. Economist Javier de Haedo, in an opinion expressed before the September CPI was published, argued for cutting the rate to encourage a real depreciation of the peso and support competitiveness. This is his assessment of the monetary policy stance, not a decision by the Central Bank.

For businesses, the figure provides a reference point for recent price trends and their components, but it does not by itself determine the future course of costs, demand, or interest rates. Year-over-year inflation remained within the BCU’s tolerance range, although above its point target, and the monetary policy response was still to be determined.