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Inflation in Mexico rises fourth time ina row: amounts to 4.98% annually in June
Tuesday, July 9, 2024 - 08:06
Inflación Mexico crédito foto El Economista México

With this, inflation reached its highest level since June of last year, when it stood at 5.06%. This puts a hard path to Banxico's goal of 3%.

Consumer inflation continued unabated in June. Data from the National Institute of Statistics and Geography (Inegi) showed that it accelerated again for the fourth consecutive month, remaining outside the target range of the Bank of Mexico (Banxico).

In June, the National Consumer Price Index (INPC) reported a monthly advance of 0.38%, bringing the annual rate to 4.98%.

With this, inflation accelerated for the fourth consecutive month and reached its highest level since June of last year, when it stood at 5.06%.

The market was already discounting an acceleration in inflation, which would make matters complicated for Banxico given that it continues outside the target range of 3% +/- 1 percentage point.

According to the central bank calendar, headed by Victoria Rodríguez Ceja, the next monetary policy meeting will be on August 8.

"Totally agree with Jerome Powell, more benign inflation data is needed before cutting rates. He said it for the Federal Reserve, but it applies the same to the case of Mexico," Jonathan Heath, deputy governor of Banxico, previously said on social networks. .


Within the Inegi report it was observed that, within the non-core item, the greatest pressure was found for the pockets of Mexicans, with the increase in prices of fruits and vegetables.

In June, non-core inflation accelerated to 7.67% annually, which was mainly explained by an increase of 10.36% in the agricultural sector.

Within this, fruits and vegetables became more expensive by 19.73% in annual comparison, while livestock by 2.89%.

In the case of energy and tariffs authorized by the government, the inflation they reported was 5.28%.

On the underlying inflation side, which eliminates goods and services with more volatile prices from its calculation, it continued to slow down in June, reaching a level of 4.13%.

Internally, inflation of 3.28% was reported in the merchandise category, while in services—the greatest pressure—the price increase was 5.15%.



El Economista México