Mexico: Inflation slides to near three-year low in August
Consumer prices slipped 0.02% from a month earlier in August, following the 0.38% month-on-month increase in July. According to the Statistical Institute (INEGI), August’s reading largely reflected lower prices for food and non-alcoholic beverages, and transport.
Inflation fell from 3.8% in July to 3.2% in August, the lowest print since October 2016. Thus, it moved closer to the midpoint of Banxico’s target range of 2.0%–4.0%. Meanwhile, annual average inflation inched down to 4.3% in August from 4.4% the previous month.
Core consumer prices, which exclude volatile food and energy prices, rose 0.20% over the previous month in August, down from July’s 0.26% increase. For its part, core inflation held steady at 3.8% for the fourth consecutive month in August.