Mexico Inflation Rate Drops to 4.51% in May

Inflation rate in Mexico eased further to 4.51 percent year-on-year in May 2018 from 4.55 percent in April while markets were expecting a sharper decrease to 4.43 percent. Still, it remained at its lowest level since December of 2016, as prices slowed more for food, beverages & tobacco.

Year-on-year, prices continued to ease for food, beverages & tobacco (4.73 percent vs 4.90 percent in April); education (4.82 percent vs 4.84 percent) and they fell for fruits and vegetables (-0.87 percent vs 4.07 percent). Meanwhile, inflation picked up for energy (12.37 percent vs 9.12 percent); other services including restaurants, telephone services, medical services and package tourist services (3.73 percent vs 3.24 percent) and housing (2.57 percent vs 2.56 percent).

On a monthly basis, consumer prices decreased 0.16 percent, compared to a 0.34 percent drop in April and market expectations of a 0.23 percent fall. Main downward pressure came from prices of electricity (-22.32 percent vs -13.86 percent); lemon (-40.88 percent vs -4.40 percent) and eggs (-7.58 percent vs -4.18 percent); while cost rebounded for domestic gas (7.22 percent vs -5.80 percent).

The core index, which strips out some volatile food and energy prices rose 0.26 percent during the month (0.15 percent in April) and was almost unchanged at 3.69 percent on a yearly basis (3.70 percent in April), hitting the lowest level since December 2016.  

 Mexico Inflation Rate Drops to 4.51% in May

INEGI | Luisa Carvalho |
6/7/2018 2:13:44 PM