Mexico: Mid-month data points to higher inflation in January
January 24, 2012
In December, consumer prices added 0.82% over the previous month. The reading came in below the 1.08% price rise observed in November but above market expectations that had prices rising 0.74%. The monthly increase was mostly underpinned by higher prices for agricultural products, in particular for fruits and vegetables. As a result, annual headline inflation jumped from 3.5% in November to 3.8% in December and thus ended the year above the Central Bank's permanent inflation target of 3.0%. Although monthly inflation data for January will not be released until 9 January, mid-month figures suggest that inflation is likely to continue to rise. In the first half of January, consumer prices added 0.32% over the previous two-week period, which overshot both the 0.17% increase recorded in the same period last year and market expectations of a 0.24% increase.