Few beginnings of the year have been as complex for the finances of Mexicans as in 2023. Inflation in the country has not subsided, steps on the accelerator and stood at 7.91% at the annual rate at the end of January, in contrast to the 7.86% in the one that closed in December 2022. The January slope becomes more pronounced, since the increase in prices has been two months of increases in products, mainly food, according to the data released this Thursday by the National Institute of Statistics and Geography (Inegi).
The price increase compared to December 2022 was 0.68%, which places inflation at its highest level for a month of January since 2001. Core inflation, which does not take into account fresh food or the due to its volatility and which determines the path of general inflation, increased 0.71% at the monthly rate and 8.45% at the annual rate. Within the underlying index, the prices of merchandise increased 0.91% at the monthly rate and the value of services rose 0.48%.
A closer look at the non-core index shows that the prices of agricultural products grew 0.51% and the energy and tariffs authorized by the government, 0.62% at a monthly rate.
This data is crucial to determine the reference interest rate. According to the survey prepared by Citibanamex, analysts indicate that the Bank of Mexico (Banxico) will raise the reference rate by 25 basis points in the monetary policy announcement that will be released this Thursday, February 9. The current reference rate stands at 10.50% since its last increase in December 2022.
