Mexico: Inflation moderates further in April
May 9, 2016
In April, consumer prices fell 0.32%, which was faster than the 0.26% decrease the markets had expected. April’s plunge contrasted a 0.15% increase observed in March and was the first monthly drop since May 2015. As usual, around this time of the year, the decline in consumer prices is largely driven by seasonal factors related to electricity tariffs. In addition, the monthly drop also reflected lower prices for fresh food.
In April, inflation fell for a second consecutive month, following February’s peak of 2.9%. Inflation edged down from 2.6% in March to 2.5% in April, which was the lowest level since December 2015. The result was in line with the Central Bank’s view that inflationary pressures remain contain for now and that inflation continues to hover below its target of 3.0%.
The closely watched core consumer prices—which exclude volatile categories such as fresh food and energy—increased 0.22% in April over the previous month, which marked a slower increase compared to the 0.36% rise registered in March. Core inflation remained stable at March’s 2.8% in April.
Author: Ricardo Aceves, Senior Economist