Mexico: Inflation reaches highest level in more than two years
September 7, 2012
In August, consumer prices increased 0.30% over the previous month. The reading came in below the 0.56% climb recorded in July, but was virtually in line with market expectations, which had prices rising 0.28%. Non-core prices were the main driver behind the monthly increase, adding 0.55%, while core prices rose 0.22%. As a result of the relatively strong monthly increase, annual headline inflation rose from 4.4% in July to 4.6% in August, which represents the highest level recorded since March 2010. Annual core inflation - which excludes food and energy prices - also inched up from 3.6% in July to 3.7%. Monetary authorities recently stated that inflation was likely to remain above 4.0% in the coming months. That said, the Central Bank remains confident that inflation will fall back to between 3.0% and 4.0% by the end of this year and will remain within the same range by the end of 2013.