## Uruguay: Selected Issues

_IMF Staff Country Reports, March 27, 2009_

## Source details

**Canonical URL:** [Uruguay: Selected Issues](https://www.imf.org/en/publications/cr/issues/2016/12/31/uruguay-selected-issues-22837)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/uruguay-selected-issues-22837/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/uruguay-selected-issues-22837/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/uruguay-selected-issues-22837/bundle-manifest.json)

## Bibliographic details
- Published: March 27, 2009
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451839432.002

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### Summary
- Publication date: March 27, 2009
- Core purpose: Quantifies the importance of international food and oil price inflation for Uruguayan inflation.
- Principal finding: World food prices have had a strong but stable impact on Uruguay’s inflation.

### Methodology
- Econometric approaches used:
  - Vector autoregressive (VAR) model estimations.
  - Phillips-curve estimations.
- Comparative context:
  - Similar estimations are carried out for a broader set of emerging markets to put the Uruguayan results into an international context.
- Scope of analysis:
  - Examines spillovers from commodity price increases to measures of core inflation.

### Key findings and analysis
- Spillovers to core inflation:
  - The paper examines how commodity price increases—specifically international food and oil price inflation—transmit to measures of core inflation in Uruguay.
- Relative impacts:
  - World food prices are identified as having a strong impact on Uruguay’s inflation.
  - That impact is characterized as stable over the analysis period.
- Cross-country perspective:
  - Comparable estimations for a broader set of emerging markets are presented to contextualize Uruguay’s experience, allowing assessment of whether Uruguay’s transmission differs from peer economies.

### Policy implications and recommendations (implied by analysis)
- Monitoring and policy calibration:
  - Given the strong but stable transmission from world food prices to domestic inflation, macroeconomic policy and inflation-targeting frameworks should account for international food price dynamics.
- Consideration of core inflation measures:
  - Analysis focuses on spillovers to core inflation, suggesting that policymakers should track core measures alongside headline inflation to assess persistent inflationary pressures from commodities.
- Comparative benchmarking:
  - Use of broader emerging market estimations implies value in benchmarking Uruguay’s inflation responses to external shocks against peers when designing policy responses.

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## Content in this bundle

- **Uruguay: Selected Issues; IMF Country Report 09/103; October 9, 2008**
  - [Uruguay: Selected Issues; IMF Country Report 09/103; October 9, 2008 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2009/_cr09103.pdf.md){rel="alternate" type="text/markdown"}
  - [Uruguay: Selected Issues; IMF Country Report 09/103; October 9, 2008 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2009/_cr09103.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/uruguay-selected-issues-22837_