Mexico: Inflation remains subdued but shows signs of picking up
October 24, 2011
In September, consumer prices added 0.25% over the previous month, exceeding the 0.16% increase recorded in August and beating market expectations. The monthly print reflected higher prices for education, as well for clothing and footwear, which where somewhat offset by lower agricultural prices. As a result, annual headline inflation fell from 3.4% in August to 3.1% in September, just a notch above the Central Bank's permanent inflation target of 3.0%. Although monthly inflation data for October will not be released until 9 November, mid-month figures suggest that inflationary pressures are rising in the wake of the recent peso depreciation. In the first half of October, consumer prices added 0.61% over the previous two-week period, which overshot both the 0.48% increase recorded in the same period last year and market expectations of a 0.44% increase.