Inflation in Mexico reaches its highest level

MEXICO - Mexico's headline inflation reached an annual rate of 4.98% in June, the highest level in a year, according to data published by Inegi.

With respect to the previous month, the National Consumer Price Index (NCPI) increased by 0.38%, and among the products and services that registered the highest price increases and had the greatest impact on general inflation were chayote, oranges, other vegetables and legumes, avocado, bananas, lettuce and cabbage, home ownership, low octane gasoline (Magna), services in lunchrooms, fondas, torterias and taquerias, and chicken.

However, this was partially offset by lower prices for tomatoes, serrano peppers, eggs, internet, telephone and pay TV packages, grapes, fresh chiles, lemons, poblano peppers, sugar and domestic LP gas.

Within the CPI, the core price index (which excludes the price of more volatile goods and services, such as agriculture and energy, and which provides a better perspective of the inflation trajectory in the medium term) increased 0.22% over the previous month and 4.13% at annual rate, making it 17 consecutive months of declines at annual rate and the lowest since April 2021.

At a monthly rate, merchandise prices rose 0.18% and services prices rose 0.27%.

The non-core price index registered a monthly increase of 0.87% and 7.67% annual rate.

Within the non-core index, at a monthly rate, prices of agricultural products grew 1.54% and those of energy and government-authorized tariffs, 0.26%.