Mexico: Inflation speeds up and rises to five-month high
August 7, 2014
In July, consumer prices rose 0.28% over the previous month, which came in above the 0.17% increase observed in June. The result, which was in line with 0.25% increase the markets had expected, mainly reflected higher non-core consumer prices, particularly prices for fruits and vegetables.
Owing to the monthly increase, annual headline inflation rose from 3.8% in June to 4.1% in July, which marked the highest level in five months. Inflation climbed 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 0.19% over the previous month, which mirrored the 0.21% rise observed in June. Annual core inflation ticked up to 3.2% in July (June: 3.1% year-on-year).
Author: Ricardo Aceves, Senior Economist