Inflation slows to lowest in more than two years in July: Inegi

inflation general Mexico moderated in the first two weeks July to its lowest level in more than two years, although it would still remain above the official target, data showed on Monday. National Institute of Statistics and Geography (Inegi).

Second largest economy in Latin America, according to National Consumer Price Index (INPC)the annual inflation rate reached 4.79% in the first half of the month, the lowest level since March 2021, the pullback is even larger, although the value is still above the central bank’s target of 3%.

The figure was also slightly higher than the 4.77% estimated by most economists polled by the news agency. Reuters.

The Inegi data also showed that the index underlying, Considered the best benchmark for price trajectory as it excludes some high volatility products, it rose 0.24% m/m in the first half of July.

Meanwhile, the base interannual rate fell to 6.76% in the first two weeks of July. Economists’ forecast indicated moderate inflation at 6.73%.

In it, on a monthly basis, prices for goods increased by 0.18%, for services – by 0.32%.

Products with the highest growth: avocado, with a variation of 18.51% and air Transport, from 15.89%. In contrast, those who registered the largest decline were grape, whose monthly variation decreased by 17.77%, and then green tomato, from -3.49%.

For its part, the non-core price index rose 0.44% m/m and 0.97% y/y. At the same time, prices for agricultural products increased by 1.13%, while electricity prices and government-approved tariffs decreased by 0.17%.

Finally, the Price Index of the Minimum Consumer Basket (IPCCM) increased by 0.15% every two weeks and by 4.40% year on year. For the same period in 2022, it grew by 0.45 and 8.68%, respectively.

Last month board members Bank of Mexico they made a unanimous decision to keep the benchmark interest rate unchanged at 11.25% for the second time in a row and said they may need inflation to move further towards their target.

Banxico made the first pause in its monetary tightening cycle in May after a two-year rate hike that began in 2021.

Source: Aristegui Noticias

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