Mexico: Inflation bounces back from over three-year low in January
February 7, 2020
Consumer prices rose 0.48% from the previous month in January, following the 0.56% month-on-month increase logged in December. According to the Statistical Institute (INEGI), January’s reading largely reflected higher prices for food, and alcoholic beverages and tobacco.
Inflation climbed from 2.8% in December, which had marked the lowest reading since August 2016, to 3.2% in January—thus landing slightly above the midpoint of Banxico’s target range of 2.0%–4.0%. Meanwhile, annual average inflation ticked down to 3.5% in January from 3.6% in the previous month.
Core consumer prices, which exclude volatile food and energy prices, rose 0.33% over the previous month in January, down from December’s 0.41% increase. For its part, core inflation inched up to 3.7% from 3.6% in December.
Author: Javier Colato, Economist