Mexico: Inflation hits six-month high in December
January 9, 2014
Consumer prices added 0.57% over the previous month in December. The reading was below the 0.93% increase observed in November and slightly overshot the 0.52% rise the market had expected. The monthly increase was the primarily the result of an increase in regulated prices - particularly for transport - and a jump in fresh food prices.
Annual headline inflation climbed from 3.6% in November to 4.0% in December (December 2012: 3.6%), which marks the highest rate since June 2013. Core consumer prices added 0.33% in December (November: +0.14% month-on-month) pushing annual core inflation to 2.8% in December (November: 2.6% year-on-year).
The Central Bank indicated that it expects inflation to end 2014 near 3.5%, remaining above the long-term inflation target of 3.0%. LatinFocus Consensus Forecast panelists expect inflation to end 2014 at 3.7%, which is unchanged over last month's forecast. For 2015, the panel sees year-end inflation at 3.4%.
Author: Ricardo Aceves, Senior Economist