EconomyInflation is double that of last year due to...

Inflation is double that of last year due to energy and livestock

In the first half of June of this year, inflation was double the level of the same period last year in annual terms, due to large increases in energy prices and livestock activity.

Figures from the National Institute of Statistics and Geography (Inegi) revealed that inflation was 6.02% per year, when in the same period of 2020 it was 3.17%.

The cost of energy and livestock products (livestock) were the main ones that encouraged growth with levels of 18.54% and 11.48%, respectively.

After the reopening of businesses and the restart of activities in Mexico and in the world, the demand for fuels and food increased, and therefore their prices.

In the first half of June, but in 2020, energy prices reported a drop of 3.28%, livestock had risen only 3.10%.

These indicators make up non-core inflation, which stood at 10.61% annually, when just last year its index reached 1.63%, detailed Inegi.

Food, beverages and tobacco were also among the concepts that increased the most with an annual rate of 5.94%, and non-food merchandise with 5.87%.

Still in contingency

Since April 2020 and still in the first fortnight of June 2021, the collection of prices faced the temporary closure or limitation of activities in the establishments where Inegi quotes the products of the National Consumer Price Index on a regular basis, using for electronic media, informed the institution.

The above results in a group of articles without access to their price. The closure of the establishments has occurred during this contingency period because: they carry out non-essential economic activities, due to other sanitary measures or at the will of the business owner, he said.

The lack of prices was distributed among all generics and statistically only affected those that represent 0.4% of the weighting of the total spending of the national basket.

“These measures adhere to the recommendations made by international organizations due to this contingency,” he concluded.

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