Mexico: Inflation rises in November
December 9, 2013
Consumer prices jumped 0.93% over the previous month in November. The reading was above the 0.48% increase observed in October and slightly overshot the 0.85% rise the market had expected. The monthly increase was the result of a seasonal increase in electricity tariffs, as well as higher prices for fresh food and vegetables.
As a result, annual headline inflation rose from 3.4% in October to 3.6% in November, ending four consecutive months of moderation. Annual core inflation inched up from 2.5% in October to 2.6% in November.
In its October Inflation Report, the Central Bank indicated that it expects inflation to end this year near 3.5%. For 2014, the Bank expects inflation be around 3.5%, remaining above the long-term inflation target of 3.0% due the temporary effects of tax increases.
LatinFocus Consensus Forecast panelists expect inflation to end the year at 3.6%, which is unchanged over last month's forecast. For next year, the panel sees year-end inflation at 3.7%, which is also unchanged over last month's Consensus.
Author: Ricardo Aceves, Senior Economist