Mexico: Inflation drops for the first time in six months
November 8, 2012
In October, consumer prices rose 0.51% over the previous month. The reading came in above the 0.44% increase recorded in September but undershot market expectations of a 0.55% climb. Non-core prices, in particular higher energy tariffs, were the main driver behind the monthly reading, reflecting the end of the summer electricity subsidies. In contrast, agricultural prices dropped over September, which contrasted the developments seen in the previous month. As a result, annual headline inflation declined from 4.8% in September to 4.6% in October, which marked the first drop in inflation in six months. Despite the moderation, the figure remains well above the Central Bank's permanent inflation target of 3.0%. Meanwhile, annual core inflation was stable at September's 3.6%.