Mexico: Inflation closes the year at an eight-month low
January 9, 2013
In December, consumer prices increased 0.23% over the previous month, which came in well below the 0.68% rise observed in November. The figure surprised the market on the downside, as analysts expected prices to climb 0.34%. Core consumer prices were again the main driver behind the lower-than-expected print by adding only 0.12% over November, reflecting lower prices for telecommunication services as well as air fares.
Building on the subdued figure, annual headline inflation continued trending down, falling from 4.2% in November to 3.6% in December, which represents the lowest rate in eight months. The result came in a notch below the 3.8% recorded by the end of 2011. Annual core inflation also declined from 3.3% in October to 2.9%.
The Central Bank expects inflation to continue moderating in December and close the year slightly below 4.0%. For next year, the Bank projects inflation to end the year at a range between 3.0% and 4.0%.