Mexico Inflation Rate Highest Since 2008


Consumer prices in Mexico jumped 6.44 percent year-on-year in July of 2017, following a 6.31 percent rise in June and above market expectations of 6.37 percent. The inflation rate accelerated for the thirteenth consecutive month to hit the highest level since December of 2008, mainly driven by higher prices of food and energy. 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 climb for food, beverages and tobacco (7.25 percent vs 6.90 percent in June). Additional upward pressure came from: Housing and utilities (2.56 percent vs 2.57 percent); energy (13.07 percent vs 15.20 percent) and education (4.32 percent vs 4.37 percent).

On a monthly basis, consumer prices went up 0.38 percent compared to a 0.25 percent increase in the previous month.

The core index, which strips out some volatile food and energy prices, rose 0.27 percent during the month and 4.94 percent year-on-year.

INEGI | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
8/9/2017 1:56:09 PM