Mexico: Inflation stabilizes in August
September 9, 2013
In August, consumer prices added 0.28% over the previous month, which contrasts the 0.03% decline observed in July. The increase fell short of market expectations of a 0.32% rise and mainly reflects the fact that higher prices for fuel and education offset lower prices for transport and communications.
As a result of the mild increase in August, annual headline inflation remained steady at July's 3.5%. Meanwhile, annual core inflation inched down from 2.5% in July to 2.4% in August.
The Central Bank expects inflation to end this year at around 3.5%. In 2014, the Bank expects inflation to moderate to levels close to its long-term inflation target of 3.0%. LatinFocus Consensus Forecast panelists expect inflation to end the year at 3.7%, which is unchanged from last month's forecast. For next year, the panel sees year-end inflation at 3.6%.
Author: Ricardo Aceves, Senior Economist