Mexico Inflation Rate Ticks Up to 5-Month High of 4.9%

The annual inflation rate in Mexico increased to 4.9 percent in August 2018 from 4.8 percent in July and above market expectations of 4.83 percent. It was the highest inflation rate since March, due to an overall rise in prices namely for energy and food. Meanwhile, cost went up slightly less for housing.

Year-on-year, prices continued to advance for: energy (18.96 percent vs 17.63 percent in July); food, beverages and tobacco (4.55 percent vs 4.51 percent); other services including restaurants, telephone services, medical services and package tourist services (3.81 percent vs 3.61 percent) and education (5.02 percent vs 4.79 percent). On the other hand, inflation eased slightly for housing (2.56 percent vs 2.61 percent).

On a monthly basis, consumer prices went up 0.58 percent, following a 0.54 percent increase in July and exceeding market expectations of a 0.51 percent gain. Main upward pressure came from prices of gasoline (2.73 percent) and agricultural goods such as onion (42.5 percent) and lemons (24.52 percent).

The core index, which strips out some volatile food and energy prices went up 0.25 percent during the month (0.29 percent in July) and was up 3.63 percent on a yearly basis (the same as in July).

Mexico Inflation Rate Ticks Up to 5-Month High of 4.9%

INEGI | Luisa Carvalho |
9/7/2018 1:30:08 PM