Mexico Inflation at 5-Month High in July

Consumer prices in Mexico went up 2.65 percent year-on-year in July of 2016, following 2.54 percent increase in the previous month while below market expectations of a 2.73 percent. It was the highest reading since February, mainly lifted by transport cost. On a monthly basis, prices went up 0.26 percent.

Year-on-year, transport prices rose 1.31 percent (from -0.02 percent in June); food and non-alcoholic beverages went up 3.66 percent (from +4.15 percent); housing and utilities grew 2.11 percent (+2.0 percent); clothing and footwear increased 3.15 percent (+2.99 percent); restaurants and hotels added 4.88 percent (+4.8 percent) and furnishings increased 2.11 percent (+2.99 percent). In contrast, communication cost fell 13 percent.  

Core inflation which excludes prices of energy, fruits and vegetables and livestock was 2.97 percent, the same as in the previous month. 

On a monthly basis, prices rose 0.26 percent, following a 0.11 percent growth in June and core consumer prices edged up 0.17 percent (from +0.25 percent in June)

The inflation rate has been running below the central bank’s 3 percent target since mid-2015 due to lower oil prices. Yet, the central bank already raised interest rates twice this year aiming to contain inflationary pressures that may arise from peso depreciation.

Mexico Inflation at 5-Month High in July

INEGI | Yekaterina Guchshina |
8/9/2016 5:16:16 PM