inflation general Mexico in the first half of May, it slowed more than economists had expected and reached its lowest level in 20 months, confirming the prospect of a steady decline after hitting a two-decade high last year.
He National Consumer Price Index (INPC) It stood at 6.0% year-on-year, the lowest level since the first half of September 2021, although still double the central bank’s official target, according to data released Wednesday by the central bank. National Institute of Statistics and Geography (Inegi).
This was below the estimates of economic analysts, who had expected rates at 6.15%.
On the other hand, inflation underlying, Considered the best parameter to measure price trajectory as it excludes high volatility products, it also fell more than expected to 7.45%, its lowest level since May 2022, falling for seven consecutive weeks.
Inside, at a two-week rate, prices for goods grew by 0.17%, and services, 0.19%
The products with the highest growth were potatoes and other tubers, with a variation of 7% and air Transport, from 4.58%. In contrast, those who registered the largest decline were electricity, whose monthly variation decreased by 21.22%, and then lemon, from -16.63%.
On the other hand, the price index non-underlying it fell 1.85% on a bi-weekly basis and rose 1.70% on an annualized basis. At the same time, prices for agricultural products decreased by 0.52%.
In turn, energy tariffs and tariffs approved by the government also fell by 2.99%. This was mainly due to the adjustment of electricity tariffs for the warm season in 11 cities of the country, Inegi explained.
Finally, the minimum consumer basket index (IPCCM) fell 0.58% in two weeks and rose 6.26% year on year. For the same period in 2022, it decreased by 0.35% and increased by 8.14%, respectively.
Last week, Bank of Mexico left unchanged interest rate benchmark at 11.25%, ending the monetary tightening cycle that began in June 2021.
Banxico expected inflation to hit a 3% target in the fourth quarter of 2024 and suggested that it would need to keep rates at current levels for an extended period.
Only in the first 15 days of May, prices fell by 0.32%, while the core index returned to the level of 0.18%. Both figures were also lower than expected.
Electricity fell the most in two weeks, lemons and chicken, as well as potatoes and other tubers; According to Inega, lunch boxes, hotels, torteries and taquerias, as well as their own homes, were most affected.
(According to Reuters)
Source: Aristegui Noticias

Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.