Mexico Inflation Rate at 16-1/2-Year High in December

The consumer price index in Mexico increased 6.77 percent year-on-year in December of 2017, after a 6.63 percent gain in the previous month and slightly above market consensus of 6.75 percent. It was the third consecutive rise in consumer prices and the sharpest since May 2001. Prices were higher for energy and food. The central bank expects inflation to converge to 3 percent by the end of 2018.

Year-on-year, prices remained high for: energy (17.69 percent from 17.04 percent in November) and food, beverages and tobacco (6.82 percent from 6.84 percent). On the other hand, cost slowed slightly for housing and utilities (2.65 percent from 2.68 percent) while increased at the same pace for education (4.74 percent).

On a monthly basis, consumer prices went up 0.59 percent, slowing from a 1.03 percent gain in November but above market expectations of a 0.18 percent increase.

The core index, which strips out some volatile food and energy prices went up 0.42 percent during the month (0.34 percent in November) and 4.87 percent year-on-year (4.90 percent in November).

Mexico Inflation Rate at 16-1/2-Year High in December

INEGI | Luisa Carvalho |
1/9/2018 2:42:46 PM