Mexico: Inflation inches down in August
September 8, 2011
In August, consumer prices added 0.16% over the previous month, which came in below the 0.48% increase observed in July. Moreover, the print undershot market expectations, which had prices rising 0.21%. The subdued monthly price rise was the result of a stronger increase in transportation prices (+0.38% month-on-month) that was offset by a modest rise in food prices (+0.07% mom). In addition, lower prices were observed for personal healthcare as well as for furniture and fittings. Annual headline inflation inched down from 3.5% in July to 3.4% in August, falling closer to the Central Bank's 3.0% permanent inflation target. Meanwhile, the core inflation index, which excludes volatile items such as food and energy, added 0.12% over July, prompting annual core inflation to remain unchanged at 3.2%.