There is no possible brake to stop the increase in prices in Mexico. General inflation in the country stood at 8.15% in July 2022, which places it as the highest rate in the last 22 years, when in July 2000 the rate stood at 9.12%. According to him National consumer price index, released this Tuesday by the National Institute of Statistics and Geography (Inegi), the inflation rate presented a variation of 0.74% compared to June this year. This is a drastic jump compared to last year’s index, when the annual rate was 5.81%.
Meanwhile, core inflation, which does not take into account fresh food or energy due to its volatility, increased by 7.65% compared to July last year, its highest level since July 2000. Additionally , non-core inflation had an increase of 1.09% in the month of July, reaching 9.65% at the annual rate. It is the prices of agricultural products that have increased the most, with an escalation of 1.64%, while energy rates and those authorized by the Government increased 0.63% at a monthly rate.
Despite the fact that the Government of Mexico has announced several measures to control inflation, food prices continue to put the personal finances of Mexicans in trouble. The egg was the one that had the greatest impact on inflation in July, with a monthly increase of 8.31%, while the orange had an increase of 15.51%, the onion of 13.79, the potato of 11.96 % and the green tomato of 20.41% compared to June 2022.
Inflation figures are released two days before the Bank of Mexico’s monetary policy meeting. Following the figures revealed by the Inegi, analysts expect a forceful response from the Governing Board with a new rise in the interest rate that currently stands at 7.75%, its highest level in 14 years, a measure with which the central bank intends to stop the inflation that persists in the country. “The expectation is maintained that inflation could reach 8.7% annually at the end of the year. With this inflation data, it is estimated that the Bank of Mexico will raise its interest rate by 75 basis points to a level of 8.5%”, comments Gabriela Siller, director of economic analysis at Banco Base.
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