Inflation accelerated in March to its highest level in two years

Inflation accelerated in March to its highest level in two years

Mexico’s annual inflation accelerated in March to its highest level since the end of 2018 to be above the central bank’s official target, mainly driven by increases in fuel prices.

Mexico’s consumer price index recorded an increase of 4.67% at the annual rate, the statistics institute INEGI said on Thursday, compared with the 3.76% increase in February and in line with what was projected in a Reuters poll.

It is the largest record of the headline inflation from 4.83% December 2018. For its part, core inflation at the interannual rate stood at 4.12%, also as expected by the market.

The central bank kept the benchmark interest rate unchanged in March, at 4%, citing an increase in expectations for inflation at the end of the year. The agency has a permanent inflation target of 3% +/- one percentage point.

(Photo: Reuters)

Only in March, consumer prices grew 0.83%, according to INEGI, while the underlying index advanced 0.54%.,

The items that increased their prices the most during the third month were domestic LP gas, low-octane gasoline, and foods such as eggs and corn tortillas.

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