Inflation continues to decline; it reaches a lower level from February 2021

inflation y/y from Mexico In August, it slowed for the seventh month in a row, although it will still remain above the official target, which supports the prospects that the central bank will continue to keep its key rate at a record high.

Above expectations National Consumer Price Index (INPC) It stood at 4.64% year-over-year, the lowest level since February 2021, after jumping to a more than two-decade high of 8.7% last year, according to data released Thursday by the US Bank. . National Institute of Statistics and Geography (Inegi).

This figure was slightly higher than the 4.61% estimated by most economists polled by the news agency. Reuters.

on inflation underlying, Considered the best measure of price trajectory as it excludes highly volatile products, it rose 0.27% m/m in the eighth month of the year.

The base rate, meanwhile, stood at 6.08% year-on-year in August, the lowest level since December 2021. Economists’ forecast pointed to core inflation at 6.12%.

Inside, on a monthly basis, prices for goods increased by 0.24%, and services, 0.31%

The products that showed the highest growth were tomato, with a deviation of 31.73% and onion, from 30.54%. On the contrary, the largest decrease was recorded crush, whose monthly variation is down 21.25%, followed by green bean, from -18.99%.

On the other hand, the price index non-underlying it rose 1.44% m/m and 0.37% y/y. At the same time, prices for agricultural products rose by 1.74%, and for energy and government-approved tariffs – by 1.17%.

Finally, the price index of the minimum consumer basket (IPCCM) increased by 0.75% m/m and by 4.16% y/y. For the same period in 2022, the corresponding figures were 0.94% and 9.60%, in that order.

In August Bank of Mexico (Banxico) decided to keep interest rate at a record high of 11.25% for the third consecutive time, warning that it would need to remain at that level for an extended period of time to achieve convergence with the 3% inflation target.

In May, the central bank halted the monetary tightening cycle that began in 2021 by raising rates by 725 basis points. Last week, he improved his expectations for headline inflation this year to 4.6% from an earlier forecast of 4.7% and warned that he was closely monitoring the behavior of core inflation, which, although lost strength, remains high.

(according to Reuters)

Source: Aristegui Noticias

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