Mexico’s annual inflation rate rose to 8.70% in August of 2022 to the highest level since December of 2000. Prices rose from 8.15% in July. Prices were sharply higher for both goods at 10.55% due to processed foods and beverages up 12.94% and services up 5.19%. Energy prices rose faster 7.25% vs. 4.76% last month. Last month Banco de México raised rates for the 10th consecutive rate increase since June of 2021 to 8.50% and increased its forecasts for headline and core inflation forecasts. The size of future rate increases will depend on prevailing conditions, the bank added.
Mexico CPI August of 2022 Highlights
- Annual inflation 8.70% vs 8.15% Prior, above expectations of 8.67 percent.
- Highest reading since December of 2000
- Prices accelerated in goods (10.55% vs. 10.07% in July), due to processed foods and beverages (12.94% vs. 12.09%, and services (5.19% vs. 4.90%), as housing costs edged higher (3.12% vs. 3.02
- Energy prices rose faster (7.25% vs. 4.76%).
- Core inflation rate rose to 8.05%, the highest since 2000, and up from 7.65% prior month.
- Monthly, consumer prices rose by 0.70%, above market expectations of 0.66%, but easing from the 0.74% increase in July
The core inflation rate in Mexico rose to 8.05 percent from a year earlier in August 2022, the highest since 2000, and up from 7.65 percent in the prior month.
The Peso has steadily improved since falling over 25 in May to 21 in November against the US Dollar
Source: Instituto Nacional de Estadística y Geografía (INEGI)
From The TradersCommunity Research Desk