Mexico: Inflation stabilizes in April, stays within Central Bank target
May 7, 2015
Mexico’s consumer prices fell 0.26% over the previous month, which contrasted March’s 0.41% increase and was in line with the 0.24% drop the markets had expected. According to the national statistical institute, the monthly drop in consumer prices was mainly due to lower electricity prices, stemming from the start of summer electricity subsidies.
Annual inflation in April stabilized at March’s 3.1%, consolidating around the Central Bank’s inflation target of 3.0%.
Meanwhile, core consumer prices—which exclude volatile categories such as fresh food and energy—rose 0.16% in April over the previous month, which came in below the 0.26% fall tallied in March. Annual core inflation inched down from 2.4% in March to 2.3% in April.
Author: Ricardo Aceves, Senior Economist