Mexico Inflation Edges Down to 2.5% in June

Consumer prices in Mexico went up 2.54 percent year-on-year in June of 2016, slightly down from a 2.6 percent increase in the previous month. The figure came slightly below market expectations of a 2.6 percent inflation as cost of fresh food rose at a slower pace and energy prices fell.

Year-on-year, inflation was lower for fruits and vegetables (+10.88 percent from 13.35 percent in May) and livestock products (+0.28 percent from +0.9 percent in May). Energy cost decreased 1.56 percent, following a 1.81 percent drop in May. In contrast, inflation accelerated slightly for food, drinks and tobacco (3.91 percent from 3.79 percent); non-food (3.37 percent from 3.35 percent); housing (2.25 percent from 2.22 percent) and education (4.14 percent from 4.12 percent).

Core inflation which excludes prices of energy, fruits and vegetables and livestock increased slightly to 2.97 percent from 2.93 percent.

On a monthly basis, prices edged up 0.11 percent, following a 0.45 percent drop in May and core consumer prices increased 0.25 percent (from +0.21 percent in May).

The inflation rate has been running below the central bank’s 3 percent target since mid-2015 due to lower oil prices. Yet, the central bank already raised interest rates twice this year aiming to contain inflationary pressures that may arise from peso depreciation.

Mexico Inflation Edges Down to 2.5% in June

INEGI | Francisco Caeiro |
7/7/2016 4:47:39 PM