CPI y/y (MXN) comes in at 3.12% against 4.02% consensus

Mexico’s annual Consumer Price Index, CPI y/y, was reported at 3.12% for August. This figure came in below the market consensus of 4.02% and represented a -22.4% surprise against expectations. The actual print also marked a decrease from the previous reading of 3.37%.

Following the release, USDMXN moved -51 pips in the first 5 minutes. The pair was trading -40 pips 15 minutes after the data became public. Historically, USDMXN has shown a median 1-hour move of 34 pips after similar releases. Top-quarter releases have typically seen moves of 44 pips or more, based on two releases since 2015.