The Central Bank of Uruguay reported that annual inflation stood at 4.27% in July, close to its 4.5% target, while inflation expectations remained aligned with the target. At an institutional meeting with businesses in Durazno, President Guillermo Tolosa described this as a new inflation environment, with inflation having remained within the tolerance range for more than three years despite recent increases in international oil prices. Tolosa said low, stable inflation and anchored expectations reduce the automatic pass-through of international dollar movements to domestic prices, allowing exchange-rate changes to inform consumption, production and investment decisions more clearly. The board also sought feedback from local businesses on financial-system accessibility, available instruments and access to credit.