Key facts
- Mexico's annual inflation rate increased to 3.26% in August, up from 3.12% in July.
- This is the first acceleration in headline inflation in five months.
- Core inflation, which excludes volatile food and energy prices, eased to an annual rate of 3.88% in August.
- Consumer prices rose 0.20% in August on a monthly basis.
- Producer prices accelerated to 2.60% year over year in July.
Mexico's annual inflation rate accelerated for the first time in five months in August, reaching 3.26%, up from 3.12% in July. This figure was slightly below the 3.3% forecast by economists. The monthly consumer price increase was 0.20% in August.
However, the closely watched core inflation index, which excludes volatile food and energy prices, showed easing pressures. The core index rose 0.16% during August, below market forecasts, and the annual core rate slowed to 3.88% from 3.95% in July.
Producer prices also climbed, with the Producer Price Index accelerating to 2.60% year over year in July, suggesting potential future consumer price pressures.
Despite the headline acceleration, the Bank of Mexico has maintained its benchmark interest rate at 6.50%, signaling a cautious approach. Economist Gabriela Siller noted that the service sector continues to pressure inflation, and the central bank is likely to keep rates unchanged for the remainder of the year. The current inflation reading remains within the central bank's target range.