Inflation in Mexico rises to 7.05%, its highest level in 20 years
The inflation rate in Mexico rose in the first half of November up to 7.05% year-on-year, its highest level since 2001, the National Institute of Statistics and Geography (Inegi) reported on Wednesday.
This, after a price increase in this period of 0.69% compared to the immediate previous fortnight, driven by agriculture and energy companies.
In the same period of 2020, just a year ago, the corresponding data reflected an increase of 0.04% in the consumer price index (CPI), bringing inflation to 3.43%.
“Annual consumer price inflation continued to rise in the first half of November. The overall inflation rate reached 7.05% year-on-year, the highest rate recorded since April 2001. Core inflation was 5.53%, the highest since April 2009, and non-core inflation was 11.68% “, Inegi president Julio A. Santaella said on his Twitter account.
Last October, Mexico registered an inflation rate of 6.24%, after prices rose 0.84% in the tenth month of the year.
So this data for the first half of November reflects a clear rebound in consumer prices.
The underlying price index, considered a better parameter to measure the general shortage because it eliminates items with high volatility in their prices, increased 0.15% in this period and left the annual rate at 5.53%, according to the Inegi in a statement.
Within the subgroup of underlying goods and services, merchandise increased 0.07% and services grew 0.025%, with an annual rate of 7.04% and 3.85%, respectively.
In the non-core, agriculture and livestock increased 2.17% compared to the previous fortnight and energy and tariffs authorized by the Government increased 2.38%.
At an annual level, agricultural prices have grown by 12.37%, while energy rates have risen by 11.15%.
Thus, the non-core item increased 2.29% compared to the previous fifteen days and increased 11.68% year-on-year.
Finally, the price index of the minimum consumption basket, made up of 176 products and services, showed a fortnightly increase of 0.76% and 7.94% year-on-year.
The economic reactivation in Mexico came after two months of suspension of all non-essential economic activities, in April and May 2020, due to the COVID-19 coronavirus crisis, which had a strong impact on production and consumption.
Inflation in 2020 closed at 3.15%, While in 2019 inflation was 2.83% and in 2018 consumer prices rose 4.83%.
Consumer prices climbed to 6.77% at the end of 2017, so far the highest rate since 2000, which was motivated by a rise in fuel prices.
Banco de México’s goal is 3% per year.