Mexico: Inflation rises to three-month high in June
July 9, 2014
In June, consumer prices rose 0.17% over the previous month, which contrasted the 0.32% decrease observed in May. The result, which fell short of the 0.20% increase the market had expected, mainly reflected higher prices for processed food, beverages and tobacco as well as for services, which could be due to the World Cup event.
Owing to the monthly increase, annual headline inflation rose from 3.5% in May to 3.8% in June, which marked a three-month high. Despite the increase, inflation remains within the Central Bank’s plus/minus 1.0 percentage point tolerance margin around its 3.0% target.
Core consumer prices, which strip out volatile categories such as fresh food and energy prices, rose 0.21% over the previous month, which came in above the 0.09% rise observed in May. Annual core inflation ticked up to 3.1% in June (May: 3.0% year-on-year).
Author: Ricardo Aceves, Senior Economist