Mexico: Inflation accelerates in February to the fastest pace in eight months
March 9, 2016
In February, consumer prices rose 0.44% over the previous month. The result was up from the 0.38% increase registered in January, but fell short of the 0.49% increase the markets had expected. The National Statistics Institute (INEGI) pointed out that the monthly increase reflected higher prices for agricultural products—particularly onions and eggs—and an increase in services prices. Conversely, energy prices fell over the previous month.
Following an increase in January, inflation accelerated in February at its fastest pace since June 2015. Inflation rose from 2.6% in January to 2.9% in February, which was only a notch below the Central Bank’s target of 3.0%. Before beginning to rise in January, inflation had hit a record low in December.
The closely watched core consumer prices—which exclude volatile categories such as fresh food and energy—increased 0.36% in February over the previous month, which came in above January’s 0.19% increase. Core inflation inched up from 2.6% in January to 2.7% in February, which reflected only modest pressures from higher imports prices due to the weaker peso.
Author: Ricardo Aceves, Senior Economist