general inflation in Mexico accelerated in the first half of November even as the benchmark index continued to decline, raising expectations that the central bank will keep its key rate at current levels until the end of the year.
National Consumer Price Index (INPC) amounted to 4.32% at the interannual rate.which is a recovery from 4.25% compared to the previous two weeks, when it reached its lowest level since March 2021, according to data published on Tuesday by the National Institute of Statistics and Geography (Inegi).
This figure higher than the 4.26% recorded in October.. Analysts had expected the rate to be 4.31% in the eleventh month of the year, according to a survey conducted by Reuters.
For its part, core inflation, considered a better measure of price paths because it excludes highly volatile products, fell for the nineteenth straight week to 5.31%, its lowest level since October 2021.
Within the country, on a monthly basis, prices for goods increased by 0.13%, and for services – by 0.28%.
The highest growth was observed in products such as electricity with a difference of 22.26% and green tomatoes with 18.83%. On the contrary, those who registered Lemon had a greater decreasewhose monthly fluctuation decreased by 15.85%, followed by zucchini with -5.30%.
In turn, the non-core price index fluctuated between 1.96% on a fortnightly basis and 1.41% on an annualized basis. At the same time, prices for agricultural products increased by 1.03%, and for energy resources and government-approved tariffs – by 2.77%.
This increase was a consequence, to a large extent, of the conclusion of a program to subsidize the summer electricity tariff in 11 cities of the country.
Finally, in the first two weeks of October 2023, the price index of the minimum consumer basket increased by 0.83% every two weeks and by 3.95% on an annualized basis. For the same period in 2022, the corresponding figures were 0.68 and 8.84%, in that order.
While the Bank of Mexico has opened the door to discussing easing its monetary policy at upcoming meetings after consumer prices fell from a two-decade high seen last year, it also said it may keep its benchmark rate at the current level of 11.25% for “certain time”.
His next monetary policy statement is scheduled for December 14.
(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.
