Uruguay’s inflation rate last month fell to its lowest level in nearly 18 years as price gains cooled for food, clothing and gasoline.

Consumer prices in July rose 4.79% from a year ago, down from 5.98% in June, the national statistics agency said in a report Thursday. July marked the lowest inflation rate since November 2005.

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Waning inflationary pressures allowed the central banks of Brazil and Chile to lower borrowing costs in recent days. Mexico and Peru are expected to begin similar easing cycles later in 2023. Uruguay’s central bank was the first in South America among those with inflation targets to start loosening monetary policy this year with rate cuts in April and July.

The central bank said in its most recent monetary policy report that it expects consumer prices will remain within its 3% to 6% target range through June 2025.

On the month, consumer prices dropped 0.36% on a seasonally adjusted basis, led by declines in meat, clothing and gasoline costs.