Mexico Annual Inflation Rate Slows to 4.28% in May

The annual inflation rate in Mexico decreased to 4.28 percent in May 2019 from 4.41 percent in April and below market consensus of 4.36 percent. Prices eased mainly due to energy as the electricity tariff program for warm season started in eleven cities of the country.

Year-on-year, cost of energy rose 6.51 percent, slowing from 8.58 percent in April. Meanwhile, prices increased further for food, beverages & tobacco (4.88 percent from 4.75 percent); agricultural goods (6.08 percent from 4.77 percent), namely fruits & vegetables (11.26 percent from 10.19 percent) and livestock goods (3.29 percent from 1.38 percent); housing (2.83 percent from 2.78 percent); other services including restaurants, telephone services, medical services and package tourist services (4.30 percent from 3.79 percent); and education (4.86 percent from 4.84 percent).

On a monthly basis, consumer prices declined 0.29 percent, after a 0.05 percent gain in the previous month and compared to market forecasts of a 0.22 percent fall. Prices dropped for other services (-0.18 percent from 0.89 percent in April) and fell at a faster pace for energy (-4.25 percent from -3.32 percent). Additionally, cost eased for agricultural goods (0.17 percent from 0.63 percent) and housing (0.26 percent from 0.31 percent). 

The core index, which strips out some volatile food and energy prices advanced by 0.16 percent from a month earlier (vs 0.46 percent in April) and by 3.77 percent over the previous year (vs 3.87 percent in April).

Mexico Annual Inflation Rate Slows to 4.28% in May

INEGI | Stefanie Moya |
6/7/2019 1:32:40 PM