Mexico: Inflation rises to seven-month high
October 9, 2014
In September, consumer prices rose 0.44% over the previous month, which came in above the 0.36% rise observed in August. The result, which fell short of the 0.47% increase the markets had expected, reflected higher non-core prices, particularly for fresh food prices, which were fuelled by an increase in prices for beef and tomatoes.
Annual inflation inched up from August’s 4.1% to 4.2% in September, which marked the highest level in seven months. As a result, inflation remained above the Central Bank’s plus 1.0 percentage point ceiling of its 3.0% target.
Core consumer prices, which strip out volatile categories such as fresh food and energy prices, rose 0.29% over the previous month (August: +0.21% month-on-month), which marked an eight-month high. Annual core inflation ticked down to 3.3% in September from 3.4% in August.
Author: Ricardo Aceves, Senior Economist