Mexico Annual Inflation Rate at Over 2 Year-Low

The annual inflation rate in Mexico fell to 4.37 percent in January 2019 from 4.83 percent in the previous month and below market expectations of 4.49 percent. It was the lowest inflation rate since December 2016, mainly due to a slowdown in cost of energy and food, beverages & tobacco.

Year-on-year, prices eased for food, beverages & tobacco (4.30 percent from 4.73 percent in December); energy (7.36 percent from 11.62 percent); housing (2.59 percent from 2.62 percent); and education (4.68 percent from 4.69 percent). On the other hand, cost increased further for other services including restaurants, telephone services, medical services and package tourist services (4.28 percent from 4.09 percent) and agricultural goods (7.41 percent from 7.06 percent), mostly driven by prices of fruits & vegetables (13.23 percent from 10.20 percent). 

On a monthly basis, consumer prices went up 0.1 percent, slowing from a 0.7 percent gain in December and below market consensus of a 0.2 percent rise. Prices rose at a softer pace for housing (0.24 percent from 0.19 percent); and agricultural goods (0.35 percent from 4.03 percent). Also, cost dropped for other services (-0.13 percent from 1.11 percent) and energy (-1.47 percent from -0.69 percent). Meanwhile, prices of food, beverages & tobacco advanced faster (0.48 percent from 0.46 percent).

The core index, which strips out some volatile food and energy prices rose by 0.20 percent month-over-month (vs 0.47 percent in December) and increased by 3.60 percent on a yearly basis (vs 3.69 percent in December).

 Mexico Annual Inflation Rate at Over 2 Year-Low

INEGI |Stefanie Moya |
2/7/2019 3:17:23 PM