Mexico City, Mexico (4E) – Annual inflation in Mexico stayed firm in the first half of August, when rising costs of gasoline and education were offset by falling prices of travel.
The consumer price index (CPI) climbed 0.19 percent in the first two weeks of the month, keeping the annual rate flat from the end of July at 4.07 percent, according to the National Statistics Institute report released Friday. Core CPI rose 0.15 percent to an annual pace of 3.34 percent, an increase from 3.25 percent.
Friday’s figures were slightly higher the median estimates by 11 economists by The Wall Street Journal of 0.18 percent for CPI and 0.12 percent for core CPI.
Gains in prices of high-school and college education, and the monthly rise in cost of gasoline, helped increase the CPI, while there was a fall in air fares and tourism packages.
Inflation is higher than the Bank of Mexico’s target range of 2 percent to 4 percent, the central bank said. Friday’s report showed the annual inflation will hit 4 percent in the second half of the year but will decline beginning next year toward 3 percent as the effects of the consumer tax hike wane.