Mexico: Inflation remains elevated in June
July 8, 2021
Consumer prices increased 0.53% in June over the previous month, accelerating from the 0.20% rise logged in May. Looking at the details of the release, prices for food, beverages and tobacco rose at a more moderate rate in June, although prices for housing rebounded.
Inflation came in at 5.9% in June, unchanged from May’s figure but notably above the Central Bank’s 2.0%–4.0% target range. High inflation in recent months has been driven by recovering activity, higher fuel prices and supply-chain tightness. Meanwhile, the trend pointed up slightly, with annual average inflation coming in at 4.3% in June (May: 4.1%). Core inflation rose to 4.6% in June, from the previous month's 4.4%.
Given headline inflation was above the target and core price pressures intensified, June’s figures suggest further rate hikes by the Central Bank are a distinct possibility in the near future.