Annual inflation reached 8.62% in the first half of August , exceeding market expectations and the Bank of Mexico ‘s own estimates. The prices of food merchandise and agricultural products continue to grow and even the prices of university tuition, according to data published today by the National Institute of Statistics and Geography (Inegi).
Compared to the last fortnight of July, prices in Mexico grew 0.42%, reported the Inegi, to reach an annual rate of 8.62%. An inflationary growth higher than expected by analysts consulted by Reuters, who forecast an annual inflation of 8.51%.
The underlying price index -considered a better parameter to measure the trajectory of prices, by eliminating those products with greater volatility- grew at a fortnightly rate of 0.49% and an annual rate of 7.97%, which is also above expectations. market.
Within subjacent inflation, the prices of food merchandise grew at a fortnightly rate of 0.83% and at an annual rate of 12.73%.
For its part, the non-core component, which includes merchandise with more volatile prices and tariffs authorized by the government, grew at a fortnightly rate of 0.22% and at an annual rate of 10.59%.
The increase was encouraged by a growth in the prices of agricultural products, of 14.5% at an annual rate.
The food products with the highest price increases were onions, with an increase of 37.66% fortnightly, corn tortillas (1.56%), potatoes and tubers (2.36%) and pasteurized milk (1.97%).
But it is also important to mention that educational services were impacted by inflation in that back-to-school month. According to Inegi data, university prices increased 1.19% at a fortnightly rate, while high school prices increased 1.97%.
Drills maximum point of the Bank of Mexico
Inflation in the first half of August turned out to be higher than the maximum point that the Bank of Mexico estimated it would reach during the year.
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.
With information from Reuters.
