Mexico’s inflation rate ends 2017 at 16-year high
During December 2017, the National Consumer Price Index (INPC) recorded a growth of 0.59% per month and an annual increase rate of 6.77% reported the National Institute of Statistics and Geography (INEGI). With these figures, inflation in Mexico reached its highest level in 16 and a half years, due to price increases in fruits and vegetables, energy and other tariffs authorized by the government.
The figure also exceeded the previous high of 6.66% which reached the interannual rate during last August and is the highest figure for this indicator since the 6.95% registered in May 2001 and the highest for a year-end since 2000 when it reached 8.66%.
The price index of the basic basket had an increase of 0.66% in the last month of 2017, obtaining an annual rate of 9.61%, according to INEGI figures. The basic food basket is a group of 40 products for the daily intake of two adults and two children—but without considering the costs of living, education, healthcare, clothing, footwear, and transportation, among other living expenses.
Among the cities with inflation higher than the national average during December were Veracruz, which registered an increase of 0.97%, Córdoba (0.94%), Mérida (0.90%), Torreón (0.82%), Morelia (0.82%), Aguascalientes (0.81%). %), Puebla (0.81%) and Toluca with 0.76%.
The cities with lower inflation than the national average were Huatabampo with 0.11%, Monclova (0.17%), Iguala (0.19%), Chihuahua (0.22%), La Paz (0.23%), Chetumal (0.27%), Culiacán (0.29%), Monterrey (0.29%) and Ciudad Acuña with 0.36%.
In its monetary policy decision, the Bank of Mexico had anticipated a closure for 2017 annual headline inflation greater than 6.63% in November, due to increases in energy, fruits and vegetables, as well as an increase in the minimum wage in December.