Annual inflation rate slowed to 7.8% in November

Headline inflation fell to its lowest level in six months in November, new data shows, but Mexico’s core index rose slightly to its highest level in more than 22 years.

National statistics agency INEGI reported Thursday that the annual headline inflation rate was 7.8% last month, down from 8.41% in October.

The rate is slightly lower than expected, and the lowest rate since May when consumer prices were up 7.65% on a year-over-year basis. However, it is still well above the central bank’s target range of 3% plus or minus one percentage point.

The Bank of México has lifted its benchmark interest rate by 75 basis points on four consecutive occasions in recent months as it seeks to combat high inflation. It is expected to announce another hike — perhaps a slightly more palatable one of 50 basis points — after its monetary policy meeting next Thursday. The bank’s key rate is currently set at a record high of 10%.

The core inflation rate, which strips out some volatile food and energy prices, remains a major concern for the central bank — and Mexican consumers trying to make ends meet.

INEGI reported that core inflation was 8.51% in November, up from 8.42% in October. The rate is the highest for any month since August 2000 when core inflation was 8.8%.

INEGI also reported that headline inflation increased 0.58% compared to October and core inflation rose 0.45% on a month-over-month basis.

Prices for agricultural products were up 8.9% on an annual basis in November, with that rate driven by a 13.8% rise in the cost of meat. Processed foods, tobacco and alcohol were 14.1% more expensive last month than a year earlier, while goods in general cost 11.3% more.

Services were 5.3% more expensive, while energy costs rose 3.2%, INEGI said.

President López Obrador predicted in July that inflation would begin to ease in October or November, a prediction that has been shown to be correct, at least for headline inflation.

This year’s headline inflation peak was 8.7% in August and September, the highest level in over two decades.

With reports from El Financiero 

Have something to say? Paid Subscribers get all access to make & read comments.
highway construction

Overcoming a disappointing first quarter, Mexico is now one of the OECD’s top-growing economies

0
While many of the world's strongest economies — including the United States, the United Kingdom, Japan and Germany — slowed down in the second quarter, Mexico's economy grew 1.4% from April to June.
Chuburná

Construction on 14-tower tourist project on Yucatán’s coast halted on environmental grounds

0
The work halt at the development site on duneland near Chuburná Puerto, 15 kilometers from the beach town of Progreso, is temporary at this point, as more legal proceedings are to follow.
helicopters flying overhead near the State Attorney General’s Office in Mexicali on Tuesday, following an alert issued by the United States

What’s the latest on the security situation in Mexicali?

1
No major security incidents were reported in the northern border city on Tuesday or Wednesday morning. What's the current status of the United States government's recent alert?
BETA Version - Powered by Perplexity