Mexico September Inflation Rate Falls to 3-Year Low

Mexico's annual inflation rate fell to 3.0 percent in September 2019 from 3.16 percent in the previous month, matching market expectations. It was the lowest inflation rate since September 2016, as cost of energy dropped further.

Year-on-year, energy prices went down 3.09 percent in September, after a declining 1.53 percent in August. Also, cost slowed for food, beverages & tobacco (4.61 percent from a 4.63 percent in August); and services (3.73 percent from a 3.79 percent), namely other services (4.28 percent from 4.40 percent) and housing (2.89 percent from 2.92 percent).

Meanwhile, agriculture goods inflation rose to 2.98 percent from 2.78 percent, boosted by fruits and vegetables prices (0.71 percent from -0.75 percent); and non-food goods prices went up 2.88 percent, faster than a 2.85 percent increase in the prior month.

On a monthly basis, consumer prices went up 0.26 percent in September, rebounding from a 0.02 percent fall in August and in line with market forecasts. Energy costs rose 0.03 percent (from -0.37 percent in August) and agriculture goods prices was unchanged, after declining 1.5 percent in the previous month. On the other hand, service inflation eased to 0.07 percent from 0.09 percent; and goods prices advanced 0.15 percent, slowing from a 0.3 percent gain.

The core index, which strips out some volatile food and energy prices increased 0.3 percent from a month earlier (from  0.2 percent in August) and by 3.75 percent over the previous year (from 3.16 percent in August).

Mexico September Inflation Rate Falls to 3-Year Low

INEGI | Stefanie Moya |
10/9/2019 11:31:58 AM