Friday, September 29, 2023

Inflation marks a 7-month decline in August and stands at 4.64%

According to Inegi data, August headline inflation accelerated by 0.55% on a monthly basis due to energy prices.

General inflation in Mexico was 4.64% on an annualized basis in August. the lowest level since February 2021; and marked the seventh consecutive downturn, see data from the National Institute of Statistics and Geography (Inegi).

The National Index of Consumer Prices (INPC) came in at 4.64% a year in August, compared to a 4.79% fluctuation in July.

Headline inflation has been affected in its annual rate by the underlying component: That posted its seventh straight decline in August, coming in at 6.08% on a yearly basis.

Commodity prices fluctuated by 6.86% annually. from 7.82% in July. Meanwhile, services rose to 5.15% a year from 5.24%.

Non-core inflation was 0.37% a year in August. a rebound from last July’s 0.67% drop.

The prices of Agricultural products rose 3.94% in August, at an annual rate from a previous variation of 3.16%.

Government-approved energy and tariffs were added up five months later; in August the decline was 2.68% per year.

Inflation up 0.55% compared to July

In its monthly variation General inflation recorded three consecutive months of increases in August. with a deviation of 0.55%, reported the National Institute of Statistics and Geography (Inegi).

In this case, Headline inflation was weighed down by the non-core component which rose 1.44% monthly, faster than July’s 0.77%.

Energy prices and government-approved tariffs rose 1.17% in August. from a previous 0.23% monthly decline.

Agricultural products reported a monthly fluctuation of 1.74%. lower than the previous 1.90%, see the Inegi numbers.

Core inflation slowed to 0.27% in August from a rise of 0.39% in the previous month, reflecting the softening of goods and services prices.

Gas and petrol put pressure on inflation

The tomato, the household gas, the onion, the low-octane gasoline and the prices in underwear, Fondas and torterías were the products and services that weighed most on inflation due to their impact on Mexican consumption.

Tomato price rose 31.73% monthly; followed by domestic gas at 6.24%; onion, 30.54%; and low-octane gasoline, at 0.64% per month.

The prices in Lunch boxes, fondas, torterias and taco shops They rose 0.61% monthly.

The return to classes was reflected in inflation, with university prices rising by 2.22%, Inegi explained.

Regarding the results, Banco BASE maintained its expectation for overall inflation in 2023 at 4.6% p.a. and estimated that the Bank of Mexico (Banxico) will maintain its current interest rate level for the rest of the year.

Nation World News Desk
Nation World News Desk
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