Mexico Inflation Rate Ticks Down to 4.9% in October

The annual inflation rate in Mexico eased to 4.9 percent in October 2018 from 5.02 percent in September, as widely expected. Prices rose less mainly for energy and housing.

Year-on-year, inflation softened for energy (17.10 percent vs 19.20 percent in September) and housing (2.59 percent vs 2.62 percent). Also, cost increased at the same pace for education (4.69 percent). On the other hand, prices advanced faster for food, beverages & tobacco (4.84 percent vs 4.80 percent) and other services including restaurants, telephone services, medical services and package tourist services (4.30 percent vs 4.09 percent).

On a monthly basis, consumer prices inched up 0.52 percent, compared to a 0.42 percent rise in September and market consensus of a 0.51 percent gain. Main upward pressure stemmed from prices of electricity (17.82 percent vs -0.67 percent in September), agricultural goods such as tomatoes (10.12 percent vs 4.26 percent), professional services (13.24 percent vs -17.10 percent) and air fares (12.88 percent vs -4.89 percent). Meanwhile, cost advanced less for gasoline (0.90 percent vs 1.47 percent) and domestic gas (0.90 percent vs 5.30 percent).

The core index, which strips out some volatile food and energy prices increased by 0.31 percent during the month (0.32 percent in September) and went up by 3.73 percent on a yearly basis (3.67 percent in September).

Mexico Inflation Rate Ticks Down to 4.9% in October

INEGI | Luisa Carvalho |
11/8/2018 2:46:04 PM