Mexico inflation picks up to 3.42% in early September

Key facts

• Mexico's annual inflation rate accelerated to 3.42% in the first half of September.
• Economists had forecast annual inflation to reach 3.37%.
• Core inflation eased to 3.79% in the 12 months through early September.
• Core inflation was 3.93% in the first half of August.
• The core price index was up 0.17% on a monthly basis.
• Consumer prices rose 0.33% monthly in the first half of September.

Mexico's annual inflation rate accelerated more than expected in the first half of September, reaching 3.42%, according to data from the national statistics agency INEGI. This figure was up from 3.26% a month earlier and surpassed the 3.37% forecast by economists in a Reuters poll. However, the closely watched core price index, which excludes volatile food and energy prices, continued its downward trend, standing at 3.79% in the 12 months through early September, down from 3.93% in the first half of August. The core inflation rate is within the Bank of Mexico's target range of 3%, plus or minus one percentage point. On a monthly basis, consumer prices rose 0.33% in the first half of September, while the core price index increased by 0.17%. This inflation data follows news that Mexico's economy grew 0.8% in July from June, exceeding forecasts, and expanded 3.4% annually.