Mexico’s annual inflation rate in February rose to its fastest since June on a surge in food costs while core inflation showed only modest pressure from a deep slump in the peso, data showed on Wednesday.
Inflation in the 12 months through February rose 2.87 percent, the national statistics agency said. That compared with a forecast of 2.94 percent in a Reuters poll and 2.61 percent rise in January.
Before beginning to rise in January, Mexico’s annual inflation rate posted record lows every month since last May, the longest period ever in which price gains stayed below the central bank’s 3 percent target.
However, policymakers in Latin America’s No. 2 economy raised interest rates in December following a move by the U.S. Federal Reserve and surprised the market with another hike last month in a bid to support the battered peso.
Consumer prices rose 0.44 percent in February compared with the prior month, below estimates of a 0.50 percent increase, driven mostly by higher egg and onion costs.
The core index, which strips out some volatile food and energy prices, rose 0.36 percent from January compared with 0.35 percent seen in the poll.
The 12-month core inflation rate rose 2.66 percent compared to a forecast 2.67 percent and a 2.64 percent rate in January, reflecting only modest pressure from higher import prices due to a weakening peso.
After the central bank on Feb. 17 raised interest rates and began intervening in the foreign exchange market, the peso has recovered some ground from an all-time low, but the currency is still down more 3 percent this year against the dollar.
(Reporting by Michael O’Boyle Editing by W Simon)
Trending News on PVDN
10 Million Pesos Allocated for the Rehabilitation of Puerto Vallarta’s Iconic Los Muertos Pier PUERTO VALLARTA (PVDN) - The Mayor of Puerto Vallarta, Luis Alberto Michel Rodríguez, recently toured Los Muertos Pier to supervise the ongoing rehabilitation work. This project, undertaken by the Secretary of Infrastructure and Public Works (SIOP) of the State Government, has been backed with an investment of 10 million pesos. Los Muertos Pier is one…
Expats Need to Be Honest, Mexico Isn’t Safe (Opinion) PUERTO VALLARTA (PVDN) - Can you name any country that is dubbed safe, despite weekly discoveries of over 100 bags filled with human remains scattered across its lands or where international criminal organizations have infiltrated local governments from city council to mayor, governor, local and state police, the military, and the presidency? The answer, astonishingly,…
Missing LGBTIQ Activist, Rubén Michel Castro Guízar, Found Dead in Puerto Vallarta Puerto Vallarta (PVDN) - A tragic ending to a mysterious disappearance, Rubén Michel Castro Guízar, a notable figure within the LGBTIQ and deaf communities of Puerto Vallarta, was found deceased on Monday. The grim discovery was made ten days after the 32-year-old's sudden disappearance following his participation in a local pride march. The deaf activist,…
Puerto Vallarta International Film Festival Kicks Off in Style PUERTO VALLARTA (PVDN) - The 23rd edition of the Puerto Vallarta International Film Festival (FICPV) has officially opened with an illustrious gala at the Dr. Juan Luis Cifuentes Lemus Auditorium, located in the Centro Universitario de la Costa (CUCosta). The festival, running from June 8th to 11th, showcases a diverse selection of films and brings…
FBI Issue Warning to American Timeshare Owners in Mexico: $40 Million Lost to Scams in 2022 PUERTO VALLARTA (PVDN) - In a recent revelation, the United States embassy in Mexico, in collaboration with the Federal Bureau of Investigation (FBI), has issued a warning to American timeshare owners in Mexico. The advisory focuses on an emerging scam targeting this demographic via unsolicited phone calls or emails intending to rent their properties. In…
The Humble Origins of Puerto Vallarta: From Las Peñas to a Global Tourist Destination The Birthplace of Puerto Vallarta: Las Peñas Long before the town's transformation into a popular tourist destination, Puerto Vallarta, or as it was originally known, Las Peñas de Santa Maria de Guadalupe, began as a humble fishing village. Nestled between towering mountains and a sprawling sea, Las Peñas was home to only a handful of…
Eight Call Center Employees Suspected in Cartel Scam Targeting Americans Confirmed Dead Eight young employees of a call center in Mexico were confirmed dead Tuesday, victims of a violent drug cartel involved in a real estate scam targeting Americans. The tragic news comes following reports from family members who had reported the youths missing after failing to return from work. A Grisly Discovery and the Unmasking of…
Massive Infrastructure Rehabilitation Underway in Puerto Vallarta PUERTO VALLARTA (PVDN) - The municipal government of Puerto Vallarta is making strides toward bettering the infrastructure of the city. Focused efforts on the rehabilitation of streets, rural roads, and the cleanup of ditches, grates, and sewers are enhancing the quality of life for Vallarta's residents. Crews from the Public Works Directorate have been actively…
Puerto Vallarta Sees Post-Pandemic Tourism Surge with Over 3 Million Air Passengers PUERTO VALLARTA (PVDN) - In a remarkable post-pandemic rebound, Puerto Vallarta has welcomed more than 3 million passengers by air this year, nearly half a million of whom arrived in May alone. Passenger Traffic on the Rise According to data from the Grupo Aeroportuario del Pacífico (GAP), which manages the air terminal at this tourist…
Popocatépetl Volcano Activity Continues; June 5, 2023 Monitoring Update PUERTO VALLARTA (PVDN) - In the latest updates from the monitoring systems of the Popocatépetl volcano, 108 exhalations were recorded in the last 24 hours, accompanied by water vapor, volcanic gases, and minor quantities of ash. The monitoring systems also registered 51 minutes of tremor segments, ranging from low to moderate amplitude and high frequency.…
