Mexico inflation higher than expected in August

Published: September 08, 2018 12:48:24 | Updated: September 11, 2018 15:10:15

Mexican inflation increased to 4.9 per cent year-on-year in August, its highest level in five months due to gas and agribusiness, the National Institute of Statistics and Geography (INEGI) has said.

The National Consumer Price Index (CPI) of the country held steady at 4.81 per cent until July, according to data from INEGI.

The August levels were the highest since the 5.04 per cent inflation rate registered in March.

In the eighth month of the year alone, inflation was 0.58 per cent, its highest level for a similar month in a decade, INEGI President Julio Santaella said via his Twitter account, reports Xinhua.

INEGI's monthly report indicated that prices of low octane gas increased 2.73 per cent, followed by tomatoes with a 20.78 per cent increase and onions with a 42.50 per cent increase.

In contrast, air transportation costs fell by 21.81 per cent; chicken prices fell 2.73 per cent and packaged tourism services fell 9.24 per cent, according to INEGI.

The data from INEGI has a new methodology base which has been in use since the first half of August. It includes an updated basket of products and a sample with greater territorial coverage.

In a report to its customers, the private bank Ve por Mas (BX+), said it raised it inflation outlook for the end of the year to 4.5 per cent up from 4.2 per cent based on the changed methodology.

In 2017, inflation in Mexico closed at 6.77 per cent, its highest level in more than 16 years.

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