Inflation is at its lowest point since May, according to data recently released by INEGI, Mexico’s national statistics institute.
In the first half of September, the National Consumer Price Index (INPC) was only 0.09% higher than at the end of August, the smallest fortnightly increase in more than three months.
Price drops in agriculture and livestock products drove the low inflation — good news for the grocery budgets of Mexican households. Fruits and vegetable prices decreased even more, down 1.54% after a spike in prices in August. Overall, however, fruit and vegetable prices are up 7.15% over what they were in the same period of September 2023.
The drop in food prices was tempered by a smaller increase in gasoline prices, after the federal government reduced subsidies.
In its most recent survey of experts, Citibanamex estimated that the period would bring year-over-year inflation up to 4.71%. However, the numbers ended up being less than expected: in the first half of September, the INPC had increased only 4.66% compared to the same period in 2023.
Core inflation — which excludes volatile food and energy prices — rose 0.21% compared to the last 15 days of August and was up 3.95% year-over-year compared to 2023.
The price of services increased more than that of goods over the previous 15-day period — 0.24% versus 0.18% respectively — leaving year-over-year inflation at 2.94% for services and 5.15% for goods.
Headline inflation, which measures total inflation within the economy, dropped 0.31% compared to the end of August but remains 6.73% above its position in early September 2023.
According to La Jornada, analysts agreed that given current inflationary trends, the Bank of Mexico is likely to continue reducing interest rates at its next monetary policy meeting on Thursday. The interest rate currently stands at 10.75%, after a surprise rate cut in early August. It could face a further cut of 0.25% to 0.5% in coming days.
With reports from La Jornada
Source: Mexico News Daily
