Mexico Inflation June 2021

Mexico

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.

Panelists surveyed by FocusEconomics see inflation ending 2021 at 4.7%, which is up 0.4 percentage points from last month’s forecast. For 2022, the panel sees year-end inflation at 3.6%.


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Mexico Inflation June 2021

Note: Month-on-month and year-on-year changes of consumer price index (CPI) in %.
Source: Mexico National Statistics Institute (INEGI) and FocusEconomics calculations.


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