Inflation in Mexico stands at 8.62%;  it is the highest figure in 21 years and exceeds projections

In the first half of August 2022the National Consumer Price Index (INPC) increased 0.42% compared to the previous fortnight. With this result, annual headline inflation stood at 8.62 percent.

The underlying price index grew 0.49% at a fortnightly rate and, annually, 7.97%. In the same period, the non-core price index rose 0.22% fortnightly and 10.59% at an annual rate.

Within the underlying index, at a fortnightly rate, the prices of merchandise increased 0.72% and those of services, 0.22%. Within the non-core index, at a fortnightly rate, the prices of agricultural products grew 0.45% and those of energy and tariffs authorized by the government, 0.033%.

Annual inflation of 8.62% is the highest since December 2000 and represents almost triple the Bank of Mexico’s permanent target of 3% +/- one percentage point.

According to a survey of Reutersanalysts anticipated a rate of 8.52%.

“With this, it is clear that inflationary pressures continue and that inflation in Mexico has not reached a peak,” said Gabriela Siller, director of analysis at local Banco Base.

The central bank, which has raised its key rate by 450 basis points since June last year in the face of persistent price pressures, said in its latest monetary policy announcement that it expected the index to peak between August and September. 8.5% to then begin to give way.

His next rate decision is scheduled for September 29.

With information from Reuters

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