Mexican Inflation Edges up in Early August

Dow Jones
Yesterday
 

MEXICO CITY--Mexico's inflation picked up in the first half of August on slightly higher fresh food prices, while core inflation was little changed from the previous two weeks.

The consumer price index rose 0.10% in the first two weeks of this month, pushing the 12-month inflation rate up to 3.26% from 3.14% in the second half of July, national statistics institute Inegi said Monday.

Fresh fruit and vegetable prices were virtually unchanged in the two-week period, while the price of eggs rose 7.9%. The increase was partly offset by a small decline in energy prices.

Core CPI, which excludes energy and perishable food, rose 0.08% in the first half of the month and was up 3.93% from a year earlier, compared with a 3.95% annual rate in the second half of July.

The Bank of Mexico left its benchmark interest rate at 6.5% on Aug. 6 and said it expects to keep the rate at that level for some time. The central bank sees inflation taking longer than previously thought to reach its 3% target, pushing back the expected timeline to the fourth quarter of 2027 from the second quarter of next year.

 
 

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