Mexico: Inflation accelerates in February
March 7, 2013
Consumer prices rose in February 0.49% over the preceding month. The reading came in a notch above the 0.40% increase recorded in January but was in line with market expectations. Core consumer prices - which exclude volatile agricultural prices as well as energy and other government regulated tariffs - were the main driver behind the monthly reading by adding 0.51%, buttressed by a strong 27.9% increase in mobile communication tariffs.
Building on the robust monthly reading, annual headline inflation rose from 3.3% in January to 3.6% in February, thus ending a streak of four months of falling inflation. Annual core inflation edged up from 2.9% in January to 3.0%.
In its latest inflation report from February, the Central Bank expects inflation to end both this year and next at levels close to its long-term inflation target of 3.0%. LatinFocus Consensus Forecast panellists are somewhat less optimistic and expect inflation to end the year at 3.6%, which nevertheless is down 0.1 percentage points from last month's forecast. For next year, the panel expects year-end inflation at 3.6%.