Mexico Inflation Rate Edges Up to 4.83% in December

The annual inflation rate in Mexico rose to 4.83 percent in December 2018 from 4.72 percent in the prior month, slightly below market expectations of 4.89 percent. Prices increased at a faster pace for other services and agricultural goods while inflation was barely unchanged for housing.

Year-on-year, inflation picked up for other services including restaurants, telephone services, medical services and package tourist services (4.09 percent vs 3.98 percent in November) and agricultural goods (7.06 percent vs 4.78 percent), amid rising cost of fruits & vegetables (10.20 percent vs 6.02 percent) and livestock products (3.35 percent vs 3.15 percent). On the other hand, prices advanced less for energy (11.62 percent vs 13.26 percent) and food, beverages & tobacco (4.73 percent vs 4.79 percent). Meantime, inflation remained almost unchanged for housing (2.62 percent vs 2.60 percent) and was steady for education (at 4.69 percent).

On a monthly basis, consumer prices went up 0.7 percent, following a 0.85 percent rise in November and slightly below market expectations of a 0.75 percent gain. Prices slowed mostly for housing (0.19 percent vs 0.22 percent) while decreased for energy (-0.69 percent vs 2.89 percent). In contrast, cost continued to advance for agricultural goods (4.03 percent vs 3.48 percent), namely eggs (3.38 percent vs 2.83 percent); food, beverages & tobacco (0.46 percent vs 0.36 percent) and other services (1.11 percent vs 0.31 percent).

The core index, which strips out some volatile food and energy prices increased by 0.47 percent during the month (vs 0.25 percent in November) and went up by 3.69 percent on a yearly basis (vs 3.63 percent in November).

Mexico Inflation Rate Edges Up to 4.83% in December

INEGI | Luisa Carvalho |
1/9/2019 2:59:27 PM