Mexico Inflation Rate Rises Slightly to 2.73% in August

Consumer prices in Mexico rose 2.73 percent year-on-year on August of 2016, following a 2.65 percent increase in July and lower than market expectations of 2.78 percent. The inflation rate has been running below the central bank’s 3 percent target since mid-2015 due to lower oil prices and despite the peso depreciation. Yet, the central bank already raised interest rates twice this year aiming to contain inflationary pressures that may arise from a weaker currency.

Year-on-year, health prices recorded the biggest increase (4.93 percent in August compared to 4.89 percent in July), followed by restaurants and hotels (4.51 percent compared to 4.88 percent); education (4.06 percent compared to 4.18 percent); miscellaneous goods and services (3.76 percent compared to 3.66 percent); food and non-alcoholic beverages (3.73 percent compared to 3.66 percent); furniture and household products (3.6 percent compared to 3.48 percent); clothing and footwear (3.53 percent compared to 3.15 percent); recreation and culture (3.22 percent compared to 3.23 percent); alcoholic beverages and tobacco (2.4 percent compared to 2.05 percent); transport (2.28 percent compared to 1.31 percent) and housing and utilities (1.77 percent compared to 2.11 percent). In contrast, prices of communication declined slightly faster (-13.21 percent compared to -13.03 percent).

Core inflation which excludes prices of energy, fruits and vegetables and livestock slowed slightly to 2.96 percent from 2.97 percent in July.

On a monthly basis, prices rose 0.28 percent, following a 0.26 percent growth in July and core consumer prices edged up 0.19 percent (0.17 percent in July).

Mexico Inflation Rate Rises Slightly to 2.73% in August

INEGI | Joana Taborda |
9/8/2016 2:31:18 PM