He private consumption in the domestic market, it would report annual growth in June and July of 3.5% in both months, according to estimates National Institute of Statistics and Geography (Inegi).
In June, a pertinent indicator estimated that spent made by companies, families and individuals in Mexico posted a monthly increase of 0.4% after a slight decline of 0.1% in March and a slight increase of 0.5% in April. In turn, in July it is estimated unchanged.
The Timely Indicator of Private Consumption (IOCP) provides timely econometric estimates of evolution Monthly Domestic Private Consumption Indicator (IMCPMI). While the latest is published about nine weeks after the end of the reporting month, the IOCP offers the first estimate – with a large margin of statistical error – just two weeks after the end of the specified period.
Six weeks after closing, Inegi offers a second estimate, usually more accurate.
For May of this year, the Timely Indicator of Private Consumer almost showed a better result than in April last year, when it recorded an increase of 3.5% year on year.
It should be remembered that general inflation in July, it slowed down for the sixth straight month to 4.79% year-on-year, which could influence consumer decisions.
Inflation underlying, Considered the best parameter to measure the price trajectory as it excludes high volatility products, it was set at 6.64% per annum, the lowest level since February 2022.
In turn, August 10 Bank of Mexico (Banxico) decided to keep interest rate benchmark at a record high of 11.25% for the third consecutive time, warning that it will be necessary to keep it at that level for a long time to achieve convergence with the 3% inflation target.
Thus, the central bank, which completed in May a cycle of tightening monetary policy that began in 2021, referred to a “very difficult” inflation forecast.
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.
