Mexico: Inflation picks up in April
May 9, 2011
In April, consumer prices remained virtually flat (-0.01% month-on-month), which was in line with market expectations of a 0.02% price increase. In March, consumer prices increased 0.19%. Despite the flat reading, annual headline inflation jumped to 3.4% (March: 3.0%), which is above the Central Bank's 3.0% permanent inflation target. The flat print mainly reflected the beginning of the summer electricity subsidy. As a result, energy prices dropped 10.3% over the previous month, which was partly offset by higher prices for vegetables, in particular for tomatoes. Consensus Forecast panellists and the Central Bank anticipate inflation to accelerate modestly in the coming months.