Mexico Inflation


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).

The Central Bank (Banxico) expects that by the end of 2014, inflation will be below the 4.0% target ceiling. For 2015, Banxico expects inflation to fall to around 3.0%. LatinFocus Consensus Forecast panelists expect inflation to end 2014 at 3.8%, which is unchanged over last month’s forecast. For 2015, the panel sees year-end inflation at 3.4%.

Author:, Senior Economist

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Mexico Inflation Chart

Mexico Inflation August 2014

Note: Month-on-month and year-on-year changes of consumer price index (CPI) in %.
Source: Mexico National Statistics Institute (INEGI).

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