NewsLatin AmericaInflation in Mexico gives a slight respite and stands at 8.7% in September

Inflation in Mexico gives a slight respite and stands at 8.7% in September

The rise in prices has given a slight respite to the Mexican economy. September closed with an annual inflation of 8.7%, according to the figures published this Friday by the Inegi. The National Consumer Price Index (INPC) reported a variation of 0.62% compared to the previous month. The products that continue to drive the indicator up are food; the largest price increases during September were recorded for green tomatoes, tomatoes and onions. The rise in prices in the country yields a few tenths compared to the first fortnight of last month (8.76%) to close at the same levels as in August and was below the market projection, which expected a new maximum of more than two decades with an inflation of 8.74%.

The core price index, which includes products with less volatility, was the one that rose the most, with an advance of 0.8% compared to the previous month, to stand at 8.28% annually. Within this index, the increase in food, beverages and tobacco stands out, with an annual growth of 13.38%, and merchandise reported an annual increase of 10.84% ​​during September.

As for the non-core index, which includes energy prices, the index stood at 9.96% at an annual rate. The prices of agricultural products increased 15% compared to the same month in 2021, while compared to the previous month the growth was only 1.51%. The cost of energy compared to the same month of the previous year was 6.16% and compared to August, they fell by 0.72%. The Government has launched a program of subsidies for gasoline, which has already cost more than 300,000 million pesos to the treasury at the end of September, but which has managed to curb the escalation of prices a bit. The states in which an inflation variation above the national average was registered were Durango, with 1.15%; Nayarit, with 1.08% and Veracruz, with 0.94%.

The inflation figures have been released the same week that the president of Mexico, Andres Manuel Lopez Obrador, has doubled his bet to try to contain food prices in the country. The plan, which is a battery of additional measures to its Package Against Inflation and Scarcity (Pacic), presented last May, now also contemplates that the signatory companies will have a Single Universal License with which they will have less fiscal and bureaucratic burden for to import. In addition, the strategy contemplates the freezing of tolls on highways and the closure of exports in products that Mexico is deficient in, such as white corn and black beans. The new agreement will be in force until 2023.

Faced with the highest price escalation in more than 20 years, the Bank of Mexico continues to raise the interest rate. The Central Bank’s Governing Council voted unanimously for an increase of 75 basis points, reaching 9.25%, in September. This is the highest level since Mexico began its current monetary policy in 2008. The Bank of Mexico’s decision follows that of the US Federal Reserve, which also raised its rate by 75 basis points this month.

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Source: EL PAIS

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