Mexico Inflation Rate Falls Further to 3.94% in February


The annual inflation rate in Mexico declined to 3.94 percent in February 2019 from 4.37 percent in the prior month, matching market expectations. It is the lowest inflation rate since December 2016, mainly driven by slowing prices of energy and agricultural goods.

Year-on-year, prices increased at a slower pace for energy (6.57 percent vs 7.36 percent in January); agricultural goods (4.80 percent vs 7.41 percent), led by fruits & vegetables (10.68 percent vs 13.23 percent) and livestock products (0.77 percent vs 1.95 percent); and other services including restaurants, telephone services, medical services and package tourist services (4.02 percent vs 4.28 percent). In contrast, inflation edged higher for housing (2.62 percent vs 2.59 percent); food, beverages & tobacco (4.34 percent vs 4.30 percent) and education (4.84 percent vs 4.68 percent).

On a monthly basis, consumer prices were flat, after increasing 0.1 percent in January and in line with market expectations. Prices fell for agricultural goods (-4.28 percent vs 0.35 percent), mostly fruits & vegetables (-9.13 percent vs 0.76 percent). Meanwhile, cost advanced further for housing (0.28 percent vs 0.24 percent); food, beverages & tobacco (0.54 percent vs 0.48 percent) and education (0.60 percent vs 0.44 percent).

The core index, which strips out some volatile food and energy prices rose by 0.43 percent month-over-month (vs 0.20 percent in January) and increased by 3.5 percent on a yearly basis (vs 3.60 percent in January).

Mexico Inflation Rate Falls Further to 3.94% in February


INEGI | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
3/7/2019 2:59:33 PM