Inflation in Mexico has begun to subside. In the first half of February, the National Consumer Price Index (INPC), which registers the general increase in prices in Mexico, registers a fortnightly increase of 0.30%, while at an annual rate it stands at 7.76 %, in contrast to the rate of 7.91% registered at the end of January 2023.
Although the price increase has been down for two weeks, according to reports from the National Institute of Statistics and Geography (Inegi), it continues to be a cause for concern for Mexican finances. Core inflation, which does not take into account fresh food or energy due to their volatility and which determines the trajectory of general inflation, has subsided.
During the first fifteen days of February, the annual subjacent inflation was located at 8.38%, from the data of 8.45% of the previous fortnight. Within this component, the price of merchandise showed an annual increase of 10.79%, while services became more expensive by 5.58%. For non-core inflation, in the first half of the month it was 5.93%.
“General inflation shows a gradual decrease due to the fact that the pressures on the prices of merchandise in the underlying component are moderating and that the prices of agricultural products have fallen, specifically fruits and vegetables,” says Gabriela Siller, director of economic analysis at Base Group. However, underlying inflation continues to be of interest to analysts, due to the volatility of prices. “Because published inflation is close to the expected trajectory for 2023, the inflation projection towards the end of the year remains unchanged at 5.10%,” says the economist.
