Mexico Annual Inflation up to 3.25% in January


In Mexico, consumer prices rose 3.25 percent in the year through January, approaching the Central Bank´s 3 percent target. The CPI has been following a downtrend for four consecutive months, reaching its lowest value in more than a year.

On a monthly basis, consumer prices rose 0.4 percent in January, up from the 0.23 registered in the previous month. The fall was mainly caused by a drop of 1.37 in fresh food prices, particularly tomatoes and chilies. Nevertheless, prices could have fallen even sharply without the 21 percent increase in mobile phone related costs.

Indeed, the cooling of inflation gives ground to the Central Bank´s argument from last month that a lower inflation rate may justify a cut in the benchmark interest rate.
 

Duarte Ricardo | duarte.ricardo@tradingeconomics.com
2/7/2013 7:05:59 PM