Mexico Inflation Fears

The continuing high price of corn, and in turn the cost of Mexico’s staple food – the tortilla – is continuing to put pressure on prices in general and are sparking fears of a rise in inflation as the price rises spill over into other sectors, such as wages. Mexico’s core inflation rate, which excludes energy and some fresh foods, rose to 3.95% for the 12 months through mid-February, from 3.89% in January. Meanwhile, annual headline inflation was up to 4.1% through mid-February, passing the 4% government target.