Annual Inflation in Mexico – First Half of September 2023

According to the biweekly report, annual inflation in Mexico slowed down more than what experts had estimated.

In fact, annual inflation in Mexico stood at 4.44% in the first half of September, marking its ninth consecutive biweekly decrease.

These figures were disclosed by the National Institute of Statistics and Geography (Inegi).

In the first half of September, the National Consumer Price Index (CPI) recorded a 0.25% increase compared to the immediate previous period, the lowest rate for this period since 2020.

The overall price increase in the first half of September was below the consensus of analysts, who had predicted a 4.48% annual rate.

Furthermore, it fell within the range of a minimum of 4.40% and a maximum of 4.59% forecasted by the 33 financial institutions consulted by CitiBanamex, of which three accurately predicted the outcome.

Breakdown of Annual Inflation in Mexico: First Half of September

While this period was characterized by cost pressures in education services and food items like eggs, tomatoes, lemons, and carrots.

The core price index, which includes goods and services with less price volatility, saw a growth of 0.27% on a biweekly basis and an annual rate of 5.78%, lower than the 5.96% observed in the previous biweekly period.

Within the core index, the prices of goods increased by 6.35% on an annual basis, while services increased by 5.08%.

In the same period, the non-core price index advanced by 0.19% biweekly, resulting in an annual increase of 0.48% compared to the 0.61% increase in the immediate previous period.

Within the non-core index, prices of agricultural and livestock products grew by 3.57% on an annual basis, while prices of energy and government-authorized tariffs decreased by 2.20%.

Finally, the Minimum Consumption Basket Price Index, which evaluates the prices of 176 products and services included in the food and non-food basket of the National Council for the Evaluation of Social Development Policy (Coneval), had a biweekly variation of 0.34% and an annual rate of 3.96%.

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