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.
Author: Ricardo Aceves, Senior Economist