Mexico: Inflation stabilizes at five-month high in August
September 9, 2014
In August, consumer prices rose 0.36% over the previous month, which came in above the 0.28% increase observed in July. The result, which was broadly in line with 0.31% increase the markets had expected, mainly reflected higher non-core consumer prices, particularly prices for fruits and vegetables.
Annual headline inflation stabilized at July’s 4.1% in August, which marked the highest level in five months. Consequently, inflation is still 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 0.21% over the previous month, which is above the 0.19% rise observed in July. Annual core inflation ticked up to 3.4% in August (July: 3.2% year-on-year).
Author: Ricardo Aceves, Senior Economist