Mexico: Inflation rises slightly in March, consolidates within Central Bank's target
April 9, 2015
In March, consumer prices rose 0.41% over the previous month, which came in above both the 0.19% increase tallied in February and the 0.32% rise the markets had expected. March’s result reflected increases in core consumer prices and non-core consumer prices, particularly prices for fuels and fresh food. Within the fresh food sub-component prices for tomatoes and eggs soared over the previous month. Analysts still agree that the pass-through effects from the depreciation of the Mexican peso are still not visible.
Annual inflation inched up from 3.0% in February to 3.1% in March, consolidating around the Central Bank’s inflation target of 3.0%.
Meanwhile, core consumer prices—which exclude volatile categories such as fresh food and energy—rose 0.26% in February over the previous month, which came in below the 0.34% fall tallied in February. Annual core inflation stabilized at February’s 2.4% in March.
Author: Ricardo Aceves, Senior Economist