Mexico: Inflation holds stable in September
October 7, 2022
Inflation held steady at August's 8.7% in September, well above the Central Bank’s 2.0%–4.0% target range. The reading was driven by moderating price pressures for housing offsetting faster food inflation.
Annual average inflation rose to 7.6% in September (August: 7.4%). Meanwhile, core inflation ticked up to 8.3% in September, from the previous month's 8.1%.
Finally, consumer prices increased 0.62% in September over the previous month, coming in below August's 0.70% rise. September's result marked the weakest reading since May.
In early October, the president announced a revamped version of the PACIC anti-inflation plan first presented in May. The plan aims to reduce the price of basic food items in collaboration with the private sector. At 14% in September, food price inflation is the major driver of high headline inflation in Mexico. That said, the plan will likely only have a limited effect and will be no substitute for tighter monetary policy.