Mexico Inflation Rate Highest In Over 8 Years


Consumer prices in Mexico jumped 6.31 percent year-on-year in June of 2017, following a 6.16 percent rise in May but below market expectations of 6.34 percent. The inflation rate accelerated for the twelfth straight month, reaching the highest since December of 2008, led by cost of housing and utilities, food and energy. Consumer prices spiked in January after the liberalization of gasoline cost. The central bank expects inflation to stay above the 3-4 percent target in 2017 and to converge to 3 percent by the end of 2018.

Prices continued to rise for housing and utilities (2.57 percent vs 2.56 percent in May) and food, beverages and tobacco (6.90 percent vs 6.78 percent). Meanwhile, cost slowed for energy (15.20 percent vs 16.09 percent) and education (4.37 percent vs 4.40 percent).

The core index which strips out some volatile food and energy prices advanced 4.83 percent, following a 4.78 percent rise in May.

On a monthly basis, consumer prices went up 0.25 percent compared to a 0.12 percent fall in the previous month and the core index went up 0.30 percent, following a 0.28 percent increase.

INEGI | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
7/7/2017 1:54:46 PM