Mexico: Inflation rises to nine-month high
November 7, 2014
In October, consumer prices added 0.55% over the previous month. The reading was above the 0.44% rise tallied in September and was on par with market expectations. According to the statistical institute, the monthly increase was the result of higher electricity prices due to the yearly termination of the summer electricity subsidy.
As a result of the monthly increase, annual inflation increased from 4.2% in September to 4.3% in October, which marked the highest level in nine months. Inflation is still hovering above the Central Bank’s 1.0 percentage point ceiling of its 3.0% target.
Core consumer prices—excluding volatile categories such as fresh food and energy prices—rose 0.17% over the previous month, which came in below the 0.29% rise tallied in September. Annual core inflation in October was unchanged at September’s 3.3%.
Author: Ricardo Aceves, Senior Economist