Mexico: Inflation remains muted in June
July 7, 2016
In June, consumer prices rebounded and rose 0.11% (May: -0.45% month-on-month). The monthly increase contrasted two consecutive months of decline and fell short of the 0.17% rise the markets had expected. According to the National Statistics Institute, June’s result stemmed mainly from an increase in the core component of the consumer price index, with prices of both products and services rising over the previous month. Conversely, non-core prices—particularly prices for fresh food—fell substantially in June.
Inflation edged down from 2.6% in May to 2.5% in June and the result was in line with the Central Bank’s view that inflationary pressures remain contained for now and that inflation continues to hover below its target of 3.0%.
Closely-watched core consumer prices—which exclude volatile categories such as fresh food and energy—increased 0.25% in June over the previous month, which came in slightly above the 0.21% rise registered in May. Core inflation ticked up to 3.0% in June from May’s 2.9%.
Author: Ricardo Aceves, Senior Economist