Mexico: Inflation reaches five-month high in March
April 9, 2013
In March, consumer prices added 0.73% over the previous month. The figure came in above both the 0.49% rise seen in February and market expectations of a 0.69% increase. An increase in non-core prices (+2.11% month-on-month), mostly reflecting a surge in agricultural prices, was the main driver behind the monthly increase.
Owing to the hefty increase, annual inflation jumped from 3.6% in February to 4.3% in March, which represents its highest level in five months. As a result, annual average inflation edged up from 4.0% in February to 4.1%.
Meanwhile, core consumer prices - which exclude volatile agricultural prices as well as energy and other government regulated tariffs - added only 0.30% over the previous month, which prompted annual core inflation to remain stable at 3.0%.
In its latest inflation report from February, the Central Bank expects inflation to end both this year and next at levels close to its long-term inflation target of 3.0%. LatinFocus Consensus Forecast panellists are somewhat less optimistic and expect inflation to end the year at 3.6%, which is unchanged from last month's forecast. For next year, the panel expects inflation to end the year also at 3.6%.