Mexico Inflation

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Mexico: Inflation falls to new record low in July

August 7, 2015

Mexico’s consumer prices rose 0.15% over the previous month. The increase came in below the 0.17% rise observed in June and fell short of the 0.16% increase the markets had expected. The National Statistics Institute reported that the more moderate increase in July stemmed from lower non-core prices, particularly lower unprocessed food and energy prices.

Headline inflation fell from 2.9% in June to 2.7% in July, which marked a new multi-year low and continued to fall further below the Central Bank’s target of 3.0%.

Core consumer prices—which exclude volatile categories such as fresh food and energy—rose 0.17% in July over the previous month, which came in below June’s 0.21% increase. Annual core inflation in July remained stable at 2.3% for the fourth consecutive month.

The Central Bank (Banxico) expects inflation to end 2015 below 3.0%, amid a slack in domestic demand. For 2016, the Central Bank sees inflation converging to around 3.0%. LatinFocus Consensus Forecast panelists expect inflation to end 2015 at 3.0%, which is unchanged over last month’s forecast. For 2016, the panel sees year-end inflation at 3.4%.


Author:, Senior Economist

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Mexico Inflation Chart


Mexico Inflation July 2015

Note: Month-on-month and year-on-year changes of consumer price index (CPI) in %.
Source: Mexico National Statistics Institute (INEGI).


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