Consumer prices fall in Mexico

Mexico City, Aug 9 (IANS/EFE) Mexico's consumer price index fell 0.03 percent in July, compared to the previous month, bringing the inflation rate over the past 12 months to 3.47 percent, the National Institute of Statistics and Geography, or INEGI, said.

The core rate of inflation, which excludes volatile food and energy prices, rose 0.03 percent, with the core inflation rate over the past 12 months at 2.50 percent, the INEGI said in a statement Thursday.

The prices of fruits and vegetables fell 2.31 percent last month, compared to the previous month, while beef prices edged 1.08 percent lower.

Energy services rose 0.63 percent and housing inched up 0.17 percent, the INEGI said.

Consumer prices rose 3.57 percent last year, while the inflation rate was 3.82 percent in 2011.

The Bank of Mexico, the country's central bank, expects the inflation rate to end the year at 3.5 percent and to be around 3 percent in 2014.

President Enrique Peña Nieto's administration is forecasting economic growth of 3.1 percent for this year.

Mexico's gross domestic product (GDP) grew 3.9 percent in 2012.

Producer prices, meanwhile, fell 0.35 percent in July, compared to the previous month, while the producer price index rose 0.97 percent in the past 12 months, the INEGI said.

--IANS/EFE

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