Mexico Inflation


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%.

The Central Bank (Banxico) expects that by the end of 2014, inflation will be below the 4.0% target ceiling. For 2015, Banxico expects inflation to fall to around 3.0%. LatinFocus Consensus Forecast panelists expect inflation to end 2014 at 3.8%, which is unchanged over last month’s forecast. For 2015, the panel sees year-end inflation at 3.4%, which is unchanged from last month’s estimate.

Author:, Senior Economist

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Mexico Inflation Chart

Mexico Inflation October 2014

Note: Month-on-month and year-on-year changes of consumer price index (CPI) in %.
Source: Mexico National Statistics Institute (INEGI).

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