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Mexico inflation rate at record low early August

Staff writer |
Mexican inflation slowed to a record low in the first half of August as consumer prices rose less than expected following a drop in fruit and vegetable prices and a decline in vacation costs following the summer holiday period.

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The consumer-price index rose 0.12% in the first two weeks of the month, pushing the 12-month rate down to 2.64% from 2.74% at the end of July, the National Statistics Institute said Monday. Core CPI, which excludes energy and fresh fruit and vegetables, rose 0.12% for an annual rate of 2.29%.

The increase in the CPI was below the 0.16% median estimate of 11 economists polled by The Wall Street Journal.

A drop in airfares and tourism packages following the summer holidays and lower prices for tomatoes and other fresh produce offset increases in education costs related to the start of the new high school and college terms.

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