Inflation in Mexico continues to decline and for the first half of October, the indicator reached 4.27 percent, its lowest level since March 2021, according to data from the National Institute of Statistics and Geography (Inegi).
The decrease in inflation was a consequence, mainly, of an annual drop of 2.83 percent in the cost of energy, as well as a 1.15 percent drop in livestock products such as beef, chicken, eggs, among others.
The data reported by Inegi were below the consensus of analysts consulted by Citibanamex, who estimated a level of 4.40 percent for inflation in the first half of October.
According to Rodolfo Navarrete, chief economist at Vector, inflation has decreased due to lower production costs in general, which in turn has an impact on the final price of consumers.
The falls have been more pronounced in entities such as the City and State of Mexico, Tlaxcala, Hidalgo and San Luis Potosí, according to Inegi.
Food refuses to go down
Despite the decrease in said indicator, the food, beverages and tobacco segment had the highest annual variation during the first half of October, registering an increase of 7.05 percent, according to Inegi.
In particular, the rise in prices in air transport, packaged tourist services, sugar, beans, beer, as well as prepared foods in loncherías, tacos, cake shops and fondas stood out.
The increases were noted to a greater extent in Tabasco, Campeche, Nuevo León, Coahuila and Yucatán.
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By the end of the year, experts consulted by Citibanamex expect inflation to reach 4.71 percent, while in 2024 it will drop to four percent, in line with the estimated range of the Bank of Mexico (Banxico).
2023-10-24 12:36:25
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