Mexico: Inflation begins to pick up pace
October 7, 2016
In September, consumer prices jumped 0.61% from the previous month, which was up from the 0.28% increase in August and overshot the 0.56% rise the markets had expected. According to the National Statistics Institute, September’s result stemmed from an increase in both non-core consumer prices, namely prices of fresh food and energy, as well as core consumer prices.
Inflation accelerated and climbed from 2.7% in August to 3.0% September, reaching the Central Bank’s target of 3.0%. This was in line with the Bank’s view that inflationary pressures are mounting.
Meanwhile, the closely-watched core consumer price index—which excludes volatile categories such as fresh food and energy—increased 0.48% in September from the previous month, well above the 0.19% rise in August. Core inflation inched up from 3.0% in August to 3.1% in September.
Author: Ricardo Aceves, Senior Economist