Saturday, June 15, 2024

Annual inflation rate slightly lower than anticipated in December

Headline inflation was lower than anticipated in December, according to the national statistics agency INEGI. The rate was 7.77% during the first half of December, the lowest rate since May and just below the expected rate of 7.79%, down from 7.8% in November.

During the same period in 2021, inflation stood at 7.45%.

The core inflation rate, which excludes goods and services with more volatile prices such as food and energy, declined slightly to 8.35% annually, compared to 8.37% at the end of November. The data is above market expectations, which predicted a rate of 8.32%.

The National Consumer Price Index increased 0.39% over the last two weeks following an 0.11% decrease due to the Buen Fin shopping event in November. This is lower than the estimated 0.41% increase.

Core inflation of consumer goods also increased by 0.62% over the last two weeks, representing the largest increase since the first half of August, when it was 0.72%. Services increased by 0.51%, the most pronounced increase since the first half of December 2021, at 0.57%.

The prices of agricultural products increased by 0.34% over the first half of December, the largest jump since the first half of September. Energy costs fell 0.54%.

In terms of food prices, the costs of serrano chiles increased by 12.71%, while the costs of onions and green tomatoes fell by 9.79% and 5.84%, respectively.

Air transport most impacted inflation, registering a cost increase of 19.61%. Tourist services increased 12.71%. At the same time, the cost of liquified petroleum (LP) gas fell 3.08% and gasoline by 0.44%.

The Bank of Mexico (Banxico) raised the interest rate by 50 basis points to 10.5% on Dec. 14, indicating a slowdown of rate increases.

With reports from El Financiero

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