Mexico Consumer Prices Climb More Than Expected in First Half of June Brendan Case - Bloomberg Business
go to original June 24, 2015

Mexican consumer prices rose more than analysts expected in the first half of June, pushing up annual inflation over a two-week period for only the third time this year.

Prices climbed 0.13 percent, the national statistics institute said on its website Wednesday, more than the 0.1 percent median forecast of 22 analysts surveyed by Bloomberg. The annual inflation rate rose to 2.87 percent from 2.82 percent in the last two weeks of May.

Fresh food costs stoked price increases in the first half of June and will probably contribute to further gains in the coming months, according to brokerage Vector Casa de Bolsa. Falling food costs earlier this year helped push annual inflation below the central bank’s 3 percent target last month, with the index dropping to the lowest in more than four decades.

“Inflation probably hit bottom in the second half of May and now we’ll see a slight upward tendency as food prices rise,” Luis Adrian Muniz, an economist at Vector, said by phone from Mexico City. “That doesn’t mean it will get out of control. It’s going to remain very moderate and it won’t worry the central bank.”

The peso weakened 0.4 percent to 15.4633 per U.S. dollar at 9:37 a.m. in Mexico City.

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