Mexico’s inflation rate declines for third month in a row
During last March, consumer prices registered a growth of 0.32%, below expected, with which inflation at annual rate decreased to 5.04%, its third month downwards and the lowest rate since February last year. Analysts surveyed by the Bank of Mexico (central) expected a monthly growth of 0.40%.
The National Institute of Statistics and Geography (INEGI) reported that monthly inflation was due to price increases in gasoline, tourism services and some fruits and vegetables, partially offset by decreases in LP gas and other agricultural products.
The agency revealed that in March of last year, monthly inflation was 0.61% monthly and at an annual rate of 5.35%. With this, the annual inflation data in March of this year was the lowest since February 2017 and added three months of setbacks, from 6.77% at the end of last year, which was its highest level in 17 years.
The INEGI reported that the products with rising prices in March were low octane gasoline, some fruits and vegetables, packaged tourism services, housing, air transportation, electricity, restaurants and the likes.
In contrast, the products with downward prices were LP domestic gas, other fruits and vegetables, as well as cooked foods.
The INEGI pointed out that in March of this year, core inflation, which eliminates the general index of goods and services that has more volatile prices, registered a monthly increase of 0.33% and an annual rate of 4.02%, from 4.27% in February.
Within the underlying price index, the prices of goods showed a rise of 0.25% and services of 0.40% per month.
Also in March, non-core inflation rose 0.30% monthly and 8.03% annual, lower than the 8.5% in February. Within the non-core price index, the prices of agricultural products increased 0.38% and those of energy and tariffs authorized by the government 0.26% at monthly rate.
The basket of goods price index saw a monthly increase of 0.26%, as well as an annual rate of 6.46%, while the same month of 2017 the figures were 0.22% monthly and 7.84% annual.
Cities that had price variations above national inflation in March of this year were Tepic, Veracruz, Tapachula, San Andres Tuxtla, Villahermosa, Acapulco, Merida, Chihuahua, Mexicali and Toluca.
Meanwhile, cities with price variations below national inflation were Cortazar, Chetumal, Tulancingo, Tehuantepec, Tlaxcala, Puebla, Ciudad Jimenez, Leon, Monclova and Jacona.