Mexico Inflation Rate Steady at 3-Year Low of 3%
Mexico's annual inflation rate was unchanged at 3 percent in October 2019, its lowest level since September 2016 and matching market expectations. While prices continued to fall for energy and grew less for services; cost of housing, food and agricultural goods rose more.
11/7/2019 3:13:29 PM
Year-on-year, energy prices decreased 3.20 percent in October, after falling 3.09 percent in the previous month. In addition, cost slowed more for services (3.58 percent vs 3.73 percent), namely other services (3.91 percent vs 4.28 percent) and inflation was steady for education (at 4.73 percent).
On the other hand, prices advanced faster for housing (2.93 percent vs 2.89 percent); food, beverages & tobacco (4.67 percent vs 4.61 percent in September) and agricultural goods (3.82 percent vs 2.98 percent), pushed up by fruits and vegetables (2.36 percent vs 0.71 percent) and livestock (5.02 percent vs 4.86 percent).
On a monthly basis, consumer prices inched up 0.54 percent, after increasing 0.26 percent in the previous month, compared to market expectations of 0.52 percent. Main upward pressure came from prices of energy (3.30 percent vs 0.33 percent); services (0.23 percent vs 0.20 percent), namely other services (0.32 percent vs -0.20 percent) and agricultural goods (0.11 percent vs -0.02 percent). Meanwhile, cost slowed slightly for food, beverages & tobacco (0.31 percent vs 0.38 percent).
The core index, which strips out some volatile food and energy prices increased 0.25 percent from a month earlier (vs 0.3 percent in September) and rose 3.68 percent over the previous year (vs 3.75 percen in September), the lowest rate in 7 months.