Mexico June Inflation Rate Eases to 4-Month Low

The annual inflation rate in Mexico declined to 3.95 percent in June 2019 from 4.28 percent in the previous month, matching market expectations. The slowdown was mainly driven by cost of energy due to the electricity tariff program for warm season.

Year-on-year, prices of energy eased to 2.51 percent from  6.51 percent in May. On the other hand, cost went up further for food, beverages & tobacco (5.01 percent compared to 4.88 percent); agricultural goods (6.23 percent compared to 6.08 percent), in particular livestock goods (4.89 percent compared to 3.29 percent); housing (2.84 percent compared to 2.83 percent); and other services including restaurants, telephone services, medical services and package tourist services (4.39 percent compared to 4.30 percent). Additionally, inflation was steady for education (at 4.86 percent, the same as in May).

On a monthly basis, consumer prices increased 0.06 percent, rebounding from a 0.29 percent fall in the prior month and slightly below market forecasts of a 0.07 percent rise. Prices advanced for other services (0.57 percent compared to -0.18 percent in May) and rose at a faster pace for services (0.38 percent compared to 0.03 percent). Also, cost of energy decreased less (-1.55 percent compared to -4.25 percent).

The core index, which strips out some volatile food and energy prices increased by 0.3 percent from a month earlier (vs 0.16 percent in May) and by 3.85 percent over the prior year (vs 3.77 percent in May).

Mexico June Inflation Rate Eases to 4-Month Low

INEGI | Stefanie Moya |
7/9/2019 11:22:15 AM