Mexico: Inflation remains stable in August
September 8, 2016
In August, consumer prices rose 0.28% over the previous month, which followed a 0.26% increase in July and was virtually in line with the 0.27% rise the markets had expected. According to the National Statistics Institute, August’s result stemmed mainly from an increase in the non-core component of the consumer price index, namely prices of fresh food and energy.
Inflation remained stable at July’s six-month high of 2.7% in August 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 0.19% in August over the previous month, which virtually mirrored the 0.17% rise in July. Core inflation stabilized at July’s 3.0% in August.
Author: Ricardo Aceves, Senior Economist