Mexico: Inflation continues relentless fall in September
October 8, 2015
Mexico’s consumer prices rose 0.37% over the previous month, which came in above the 0.21% increase observed in August, but fell short of the 0.42% rise the markets had expected. The National Statistics Institute (INEG) reported that the monthly increase resulted from higher non-food items as well as for higher education fees due to the beginning of the academic year.
Inflation continued its relentless decline, reaching yet another all-time low in September. Inflation fell from 2.6% in August to 2.5%. Since the first quarter of the year, inflation has lost half a percentage point, remaining well below the Central Bank’s (Banxico) target of 3.0%.
Moreover, the closely watched core consumer prices—which exclude volatile categories such as fresh food and energy and also provide more information regarding knock-on effect from the currency weakening in recent months—rose 0.37% in September over the previous month, which was up from August’s 0.20% increase. Annual core inflation in September inched up from 2.3% in August to 2.4% in September.
Author: Ricardo Aceves, Senior Economist