Mexico Inflation Rate Hits Highest Level in Over 16 Years


Consumer prices in Mexico jumped 6.66 percent year-on-year in August of 2017, following a 6.44 percent rise in July and matching market expectations. The inflation rate accelerated for the fourteenth consecutive month to hit the highest level since May of 2001, led by higher prices of food, housing & utilities, energy and education. On a monthly basis, consumer prices rose 0.49 percent. 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 advance for food, beverages and tobacco (7.57 percent vs 7.25 percent in July); housing and utilities (2.62 percent vs 2.56 percent) and education (4.63 percent vs 4.32 percent). Meanwhile, cost of energy slowed a bit, despite staying high (12.72 percent vs 13.07 percent).

On a monthly basis, consumer prices went up 0.49 percent compared to a 0.38 percent increase in the previous month.

The core index, which strips out some volatile food and energy prices, rose 0.25 percent during the month and 5.00 percent year-on-year.

Mexico Inflation Rate Hits Highest Level in Over 16 Years


INEGI |Luisa Carvalho | luisa.carvalho@tradingeconomics.com
9/7/2017 1:37:47 PM