Mexico seems to have put a stop to inflation, as shown by the latest data released by the National Institute of Statistics and Geography (Inegi). He National Price Index Consumer Price Index (INPC) stood at 4.26% at an annual rate and 0.38% at a monthly rate, adding up to nine months of constant deceleration. If you look at the photograph of inflation in the medium term, the data is even more contrasting: in October 2022, inflation was at a rate of 8.41% and such a low level had not been observed since February 2021 .
The drop in prices has also surprised financial analysts. According to Expectations survey most recent from Citibanamex, experts expected a level of 4.28% in October, confirming that the end of the year may have positive data regarding price increases.
Although this is positive news for analysts, this level is still outside the objectives of the Bank of Mexico (Banxico), whose expectations are in the range of 3% or one point higher. Meanwhile, the central bank will give its monetary policy announcement this Thursday, where no changes are expected from the 11.25% rate that has remained unchanged since March of this year.
In a more detailed look at this Thursday’s data, core inflation, which determines the trajectory of general inflation in the medium and long term, stood at 5.50% at an annual rate in October, another index that continues to decline. , from the 5.76% recorded in September and reaching its lowest level since October 2021.
On the other hand, non-core inflation, which includes products with the most volatile prices and rates administered by the Government, stood at 0.56% in October. It was the prices of agricultural products that observed a monthly decrease of 2.09%, bringing the annual rate to 1.62%.
Fruits and legumes have recorded the most significant price decreases, at least in the last fortnight of October. According to Inegi, the products that dropped the most in price were tomatoes, with a drop of 14.46%, and onions and oranges, with a decrease of around 11% in each.
In contrast, energy stocks were the ones that registered the most visible increases. Electricity registered an increase of 19.23% in October, after the warm season electricity rate program ended in 18 cities in the country. Meanwhile, domestic LP gas increased 3.42% and air transport 13.37%.
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