Mexico Inflation Rate at 17-Month High

Consumer prices in Mexico increased 2.97 percent year-on-year in September of 2016, higher than a 2.73 percent gain in August. Inflation rose for the third straight month to the highest since April of 2014, boosted by food prices. 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 three times this year aiming to contain inflationary pressures that may arise from a weaker currency.

Year-on-year, prices of food and non-alcoholic beverages recorded the biggest increase (4.94 percent from 3.73 percent in August), followed by health (4.77 percent from 4.93 percent); restaurants and hotels (4.45 percent from 4.51 percent); education (4.27 percent from 4.06 percent); clothing and footwear (3.6 percent from 3.53 percent); miscellaneous goods and services (3.59 percent from 3.76 percent); furniture and household products (3.56 percent from 3.6 percent); recreation and culture (3.36 percent from 3.22 percent); transport (2.79 percent from 2.28 percent); alcoholic beverages and tobacco (2.74 percent from 2.4 percent) and housing and utilities (1.36 percent from 1.77 percent). In contrast, prices of communication declined 13.18 percent (-13.21 percent in August).

Core inflation which excludes prices of energy, fruits and vegetables and livestock rose to 3.07 percent from 2.96 percent in August.

On a monthly basis, prices rose 0.61 percent, following a 0.28 percent growth in August and core consumer prices went up 0.48 percent.

Mexico Inflation Rate at 17-Month High

INEGI | Joana Taborda |
10/7/2016 1:39:52 PM