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Mexico's National Consumer Price Index rose 0.10% in the first half of August as inflation reached 3.26% annually.

Mexico's National Consumer Price Index (INPC) rose by 0.10% in the first half of August, bringing the annual inflation rate to 3.26%. This figure marks the second consecutive fortnight of acceleration, breaking a trend of deceleration that had prevailed between April and July. The increase was primarily driven by rising costs in basic food items, education, and housing, though these were partially offset by lower prices in energy and air transport. Data from the Instituto Nacional de Estadústica y Geografía (Inegi) shows that service prices rose by 4.34% annually, while merchandise prices saw an inflation of 3.51%. Underlying inflation, which excludes volatile goods, stood at 3.93%. In contrast, non-underlying inflation was only 0.96% annually, aided by a significant drop in agricultural prices. Specific food items saw notable shifts: the price of onions rose 19.03% in two weeks, while eggs increased by 7.92%. Conversely, the price of domestic LP gas fell by 2.05% annually, and potatoes and tomatoes saw price decreases. Market analysts noted that the Mexican peso depreciated by 0.24% against the US dollar, reaching a rate of 16.96 pesos per dollar. The Bank of Mexico (Banxico) continues to monitor persistent pressure in the services sector, which remains a primary challenge for reaching the 3% inflation target.

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