Mexico's inflation picked up speed to an annual 3.26pc in August, driven primarily by acceleration in food and vegetable prices.
The consumer price index (CPI) accelerated from an annual 3.12pc in July, the lowest level in six years, breaking from four consecutive months of deceleration from 4.59pc in March, according to statistics agency Inegi.
Inflation came slightly below analyst forecasts, with Mexican bank Banorte's consensus survey forecast at 3.30pc. Mexican bank Banamex gave that forecast and said it expects acceleration in the coming months to be more gradual than earlier expected, citing the stronger-than-expected appreciation of the Mexican peso and a slower-than-expected reversal in agricultural prices inflation.
Core inflation, which excludes volatile food and energy prices, decelerated on an annual 3.88pc in August from 3.95pc the previous months. Within core, services inflation slowed to 4.33pc from 4.36pc in July, while consumer goods slowed to 3.41pc in August from 3.52pc the previous month.
August's faster headline rate was mainly fueled by the more volatile non-core index of prices, which accelerated to an annual 1.13pc from 0.29pc in July, mainly because fresh fruit and vegetable prices expanded by an annual 4.1pc in August, following a 2.1pc reading in July.
Agricultural prices in Mexico have begun to accelerate in recent months as expected but have been supported by more moderate-than-expected rain and temperatures this year with a slower start to impacts from the El Nino climate phenomenon, now predicted to peak between November and January 2027.
Mexico's energy price index slowed to 0.81pc in August from 1.16pc in July, supported by the government caps on LPG, regular gasoline and diesel retail prices to mitigate volatility stemming from the ongoing US conflict with Iran.
The 20 August six-month renewal of the government's price control agreement capping regular gas at Ps24/l (US$5.38/g) and diesel at Ps27/l through February should help maintain stability in energy prices.
On a monthly basis, the CPI rose by 0.20pc in August from a 0.03pc gain in July.
