Consumer prices in Mexico went up 2.6 percent year-on-year in May of 2016, slightly up from a 2.54 percent rise in the previous month and market expectations of 2.58 percent. Although marginal, it is the first increase in inflation since February when the central bank unexpectedly raised interest rates aiming to protect the currency. The inflation rate has been running below the central bank’s 3 percent target since mid-2015 due to lower oil prices.
Year-on-year cost of goods increased at a faster 3.55 percent (+3.37 percent in April) as food, drinks and tobacco rose 3.79 percent (+3.37 percent in April) while non-food products grew by a slower 3.35 percent (+3.36 percent in April). Services inflation accelerated (+2.41 percent from +2.37 percent in April) as housing (+2.22 percent from +2.17 percent in April) and other services (+2.09 percent from 2.06 percent in April) grew at a faster pace while cost of education rose at the same as in the previous period (+4.12 percent). Prices of energy went down 1.81 percent after falling 1.13 percent in April.
On a monthly basis, prices decreased 0.45 percent, following a 0.32 percent drop in April.
6/9/2016 4:36:47 PM