Mexico: Inflation inches down in August
October 7, 2011
In September, consumer prices rose 0.25% over the previous month, which exceeded the 0.16% increase recorded in August but was slightly below market expectations that had prices rising 0.29%. The monthly reading reflected higher prices for education as well for clothing and footwear, which where somewhat offset by a drop in agricultural prices, in particular for fruit and vegetables. Owing to the subdued monthly print, annual headline inflation dropped from 3.4% in August to 3.1% in September, which is just a notch above the Central Bank's permanent inflation target of 3.0%. Meanwhile, the core inflation index, which excludes volatile items such as food and energy, added 0.27% over August, prompting annual core inflation to inch down to 3.1% (July: 3.2% year-on-year).