Mexico: Inflation inches up but remains subdued
November 24, 2011
In October, consumer prices added 0.67% over the previous month, which nearly tripled the 0.25% increase recorded in September. The robust monthly print responds to a seasonal pattern, namely the point when the summer electricity tariff discounts given in some cities are discontinued. As a result, annual headline inflation only inched up from 3.1% in September to 3.2% in October. Monthly inflation data for November will not be released until 8 December. However, mid-month figures indicate that inflation continues to be driven by the end of the summer electricity tariff discounts. In the first half of November, consumer prices added 0.97% over the previous two-week period, which overshot both the 0.68% increase recorded in the same period last year and market expectations of a 0.73% increase.