Mexico: December inflation overshoots Central Bank's target
January 9, 2012
In December, consumer prices increased 0.82% over the previous month. The reading came in below the 1.08% price rise observed in November but still overshot market expectations that had prices rising 0.74%. The monthly increase was mostly underpinned by higher prices for agricultural products (+4.29% month-on-month), in particular for fruits and vegetables. Owing to the robust print, 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%. Meanwhile, the core inflation index, which strips out volatile items such as food and energy, added only 0.51%, prompting annual core inflation to inch up to 3.4% in December from 3.3% in November.