Mexico April Inflation Rate at Near 1-1/2-Year Low

Inflation rate in Mexico eased to 4.55 percent year-on-year in April of 2018 from 5.04 percent in March and below market expectations of 4.59 percent. The inflation slowed for the fourth consecutive month, reaching the lowest level since December 2016. Prices rose at a softer pace for food, beverages and tobacco; fruits and vegetables and other services.

Year-on-year, inflation eased for food, beverages and tobacco (4.90 percent vs 5.35 percent in March); fruits and vegetables (4.07 percent vs 8.82 percent); other services including restaurants, telephone services, medical services and package tourist services (3.24 percent vs 4.07 percent) while was steady for education (4.84 percent). On the other hand, prices rose faster for energy (9.12 percent vs 8.85 percent) and housing (2.56 percent vs 2.54 percent).

On a monthly basis, consumer prices inched down 0.34 percent, compared to a 0.32 percent increase in March while markets were expecting a 0.31 percent fall. The most significant monthly price decreases were recorded for electricity due to summer subsidies (-13.86 percent vs 0.75 percent); domestic gas (-5.80 percent vs -3.62 percent); package tourist services (-8.86 percent vs 11.29 percent) and air transportation (-14.12 percent vs 9.39 percent).

The core index, which strips out some volatile food and energy prices rose 0.15 percent during the month (0.33 percent in March) and 3.7 percent year-on-year (4.0 percent in March).

Mexico April Inflation Rate at Near 1-1/2-Year Low

INEGI | Luisa Carvalho |
5/9/2018 2:15:06 PM