Mexico Prices Advance More Than Forecast as Target Exceeded

August 22, 2014

08/22/14 Bloomberg

piggy bank with coinsMexican consumer prices rose more than analysts expected in the first half of August, keeping the annual inflation rate above the upper limit of the central bank’s target range.

Prices increased 0.19 percent in the two weeks, the national statistics institute said on its website today, compared with the 0.16 percent median forecast of 20 economists surveyed by Bloomberg. While the annual inflation rate fell to 4.07 percent, it remains above the 2 percent to 4 percent target range.

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Mexico annual inflation ticks up in June

July 9, 2014

07/09/14 Reuters

financeMexico’s annual inflation rate ticked up in June but remained below the central bank’s ceiling, boosting bets that policymakers will leave rates at an all-time low to support tepid growth in Latin America’s No. 2 economy.

Inflation in the 12 months through June was 3.75 percent, the national statistics institute said on Wednesday, below expectations of 3.78 percent in a Reuters poll and above the 3.51 percent annual rate registered in May.

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Mexican Prices Fall Less Than Forecast as Farm Costs Rise

June 10, 2014

BusinessWeek, 06/09/14

Farmers market by Flikr user ianmalcmMexican consumer prices fell less than expected in May as costs for some farm products increased, the statistics agency reported, three days after the central bank unexpectedly cut interest rates.

Prices fell 0.32 percent in the month, less than the 0.36 percent median forecast of 18 economists surveyed by Bloomberg. The drop was still the biggest in a year. Annual inflation was 3.51 percent, compared with 3.50 percent in April, and remained below the 4 percent upper limit of the bank’s target range.

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Limes: Mexico’s new green gold

April 10, 2014

LimesCNN, 4/10/14

Dressed in a white cowboy hat and shirt in the merciless sun, 63-year-old Juan Leana Malpica proudly pulls a branch down in his lime grove and cups a fruit. His limes, he says, set themselves apart by their juiciness.

He has been growing the fruit for the last 12 years and has never experienced a time of such upheaval.

Officially, lime prices are in a spiral of hyperinflation, the national average jumping at a monthly average of around 50% this year.

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Mexico annual inflation rate picks up pace in November

December 9, 2013

Photo by Flickr user Aleiex

Reuters, 12/9/2013

Mexican inflation picked up less than expected in November on a spike in fresh food and electricity costs and muted underlying price pressures boded for steady borrowing costs through next year.

Inflation in the 12 months through November rose to 3.62 percent, the national statistics agency said on Monday.

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Bank of Mexico Caught Between Stronger Peso, Rising Inflation

April 25, 2013

financeFox Business, 4/24/13

Economists say Mexican policy makers have limited options to address those issues at the moment, especially following their decision in March to slash the country’s benchmark lending rate by half a percentage point to 4%, the country’s first rate move since 2009. That’s left the central bank with less room to maneuver at its Thursday meeting.

On the one hand, concern about a slowdown in growth coupled with a 6.7% surge in the peso against the U.S. dollar since the start of the year might suggest that another rate cut is warranted. Such a move might help spur consumer spending and relieve pressure on the exchange rate from foreign investors searching for higher yields.

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Mexico annual inflation eases below central bank ceiling

January 9, 2013

Reuters, 1/9/2013

marketsMexican consumer prices in December dipped below the central bank’s 4 percent tolerance ceiling for the first time in seven months, further diminishing chances of an interest rate rise any time soon. Mexican consumer prices rose 3.57 percent in the year through December, slower than November’s 4.18 percent and below expectations in a Reuters poll for 3.71 percent, the national statistics agency said on Wednesday. Consumer prices picked up 0.23 percent last month, down from the 0.68 percent rate reported in November and below the 0.34 percent expected in a Reuters poll.

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