Mexico: Inflation holds steady at Banxico's target in October
November 7, 2019
Consumer prices rose 0.54% from the previous month in October, following the 0.26% month-on-month increase logged in September. According to the Statistical Institute (INEGI), October’s reading largely reflected higher prices for food, beverages and tobacco, and housing and utilities costs.
Inflation held steady at an over three-year low of 3.0% in September, thus remaining at the midpoint of Banxico’s target range of 2.0%–4.0%. Meanwhile, annual average inflation inched down to 4.0% in October from 4.1% in the previous month.
Core consumer prices, which exclude volatile food and energy prices, rose 0.25% over the previous month in October, down from September’s 0.30% increase. For its part, core inflation ticked down to 3.7% in October, after having remained at 3.8% in the five months prior.
Author: Javier Colato, Economist