Inflation in Mexico reached 8.15% annually during July, its highest point since December 2000, while core inflation accumulated 20 consecutive months with increases at the annual rate.
The data for July was slightly above what was expected by market analysts, who estimated an annual advance of 8.13%, while the BASE Financial Group forecast an annual inflation of 8.19%.
The advance in July of 8.15% is the highest annual rate since December 2000, when inflation reached 8.96%, according to data from the National Institute of Statistics and Geography (Inegi). Headline inflation in Mexico has been outside the Bank of Mexico’s target range of 3% +/- one percentage point for 17 months.
At a monthly rate, in July prices grew 0.74%.” In the same month of 2021, monthly inflation was 0.59% and annual inflation was 5.81%”, pointed out the Inegi.
Core inflation has been rising for 20 months
Core inflation, the best parameter to observe the trajectory of general inflation because it eliminates the most volatile prices, advanced 0.62% at a monthly rate and 7.65% annually, accumulating 20 consecutive months with increases.
Within the core component, merchandise prices rose 0.72% and services 0.50%.
And within the scope of merchandise, food, beverages and tobacco reached an increase of 1.02% monthly and 12.09% annually.
Egg, fruits and vegetables, through the roof
Regarding the non-core component, which includes the most volatile prices of energy and government tariffs, inflation reached 1.09% monthly and 9.65% annually, during July.
And within the non-core inflation, the prices of agricultural products grew 16.05% annually and, within this item, fruits and vegetables reached an annual increase of 16.16% and livestock products 15.96%.
The egg was one of the products with the greatest increase and had the greatest impact on general inflation, experiencing an increase of 8.31% compared to last month.
Other products of the basic basket that suffered significant increases were potatoes (11.96%), oranges (15.51%), onions (13.79%), green tomatoes (20.41%) and pork (3.4%). .
Packaged soft drinks also increased their prices again in July, this time at a monthly rate of 1.33%.
The products that fell the most in price were chicken, avocado, tomato, grape, poblano pepper, zucchini, serrano pepper, chayote and washing machines.