Consumer price inflation in Mexico declined more significantly than anticipated in December, reaching its lowest level in nearly four years, according to data released by the National Institute of Statistics and Geography (INEGI) on Thursday.
The year-on-year increase of the consumer price index stood at 4.21 percent in December, a decrease from November's 4.55 percent rise. This was below economists' predictions, who expected inflation to moderate to 4.28 percent. Notably, this marks the slowest inflation rate recorded since February 2021, bringing it closer to the central bank's upper target limit of 4.0 percent.
However, core inflation saw a slight uptick, rising to 3.65 percent in December from 3.58 percent the previous month.
Food and non-alcoholic beverage prices experienced an annual growth of 4.3 percent in December, which is a deceleration from the 6.0 percent increase observed in November. Costs associated with culture and recreation rose at a slower rate of 3.82 percent compared to last year, down from November's 3.93 percent. Conversely, transportation expenses increased at a faster pace, registering a 4.87 percent rise.
On a month-to-month basis, consumer prices edged up by 0.38 percent in December, following a 0.44 percent rise in the previous month. The core consumer prices also saw a 0.5 percent increase.
