Mexico: Inflation rises in May
June 7, 2012
In May, consumer prices declined 0.32% over the previous month, which virtually mirrored the previous month's 0.31% price drop and was broadly in line with market expectations. The price drop reflected the summer electricity subsidies, which translated in non-core consumer prices dropping 2.66%. In contrast, core consumer prices added 0.27%. Despite the monthly price drop, annual headline inflation broke the downward trend and rose for the first time in three months, jumping from 3.4% in April to 3.9% in May. Meanwhile, annual core inflation edged up from 3.4% in April to 3.5% in May. The Central Bank expects inflation to remain between 3.0% and 4.0% both this year and next.