Mexico March Inflation Rate Falls to Over 1-Year Low

Inflation rate in Mexico eased to 5.04 percent year-on-year in March of 2018 from 5.34 percent in February and below market expectations of a 5.12 percent. It was the lowest inflation rate since February last year, as prices of food, beverages & tobacco and housing grew less. This new slowdown in inflation could ease some pressure on the central bank to keep raising interest rates. The bank said the inflation rate is expected to fall and reach the 3 percent target in the first quarter of 2019.

Year-on-year, cost rose at a slower pace for food, beverages and tobacco (5.35 percent vs 5.97 percent in February) and housing (2.54 percent vs 2.55 percent). In contrast, inflation picked up for energy (8.85 percent vs 8.2 percent) and education (4.84 percent vs 4.83 percent).

On a monthly basis, consumer prices went up 0.32 percent, below 0.38 percent in February and estimates of 0.41 percent.

The core index, which strips out some volatile food and energy prices rose 0.33 percent during the month (0.49 percent in February) and 4.0 percent year-on-year (4.27 percent in February). 

Mexico March Inflation Rate Falls to Over 1-Year Low

INEGI | Luisa Carvalho |
4/9/2018 1:57:31 PM