Inflation in Mexico shows a timid acceleration: November closes at 4.32%

Inflation in Mexico has finally broken the streak of deceleration that it showed in the last nine months and has closed the month of November with an annual rate of 4.32%. The data, released this Thursday by the National Institute of Statistics and Geography (Inegi), contrasts when the National Consumer Price Index (INPC) in October was 4.26%.

Although it is not a big surprise. The increase in consumption, set by events such as Buen Fin and Cyber ​​Monday, was already making the increase in prices felt. The economic analysts consulted in the Citibanamex expectations survey even anticipated a rate of 4.40%. On a monthly basis, the INPC showed an increase of 0.64%.

It is the price of food and services that hits the pockets of Mexicans the most, especially those with lower incomes. In November, the price of food, beverages and tobacco registered an increase of 6.78% at an annual rate, while the services sector showed an increase of 5.28%.

Within the index, underlying inflation, which determines the trajectory of general inflation in the medium and long term, was 5.30% at an annual rate, its lowest level since October 2021 and 0.26% in its monthly view. “It is worth remembering that this subcomponent has shown resistance to falling, since since August 2022 it has oscillated between 5.15% and 5.71% annually, with a lateral trend,” he says. Gabriela Siller, director of economic analysis of Grupo Base.

In contrast, non-core inflation, which includes products with more volatile prices and rates administered by the Government, showed a considerable rebound. In November it stood at 1.81% at a monthly rate, being the highest since November 2021 when it registered 3.45%. At an annual rate, the non-core component stood at 1.43% in November, being the highest annual inflation since April of this year. “When compared with November in other years, it stands out that it is the second lowest annual inflation rate in the history of the indicator. This is because in November the inflation of the non-core component tends to rise,” details Siller.

Under this premise, there are products and services that show large increases. Electricity registered an increase of 22.26% at an annual rate in November, green tomatoes an increase of 24.91% and professional services of 10.08%. On the opposite side, the products that dropped the most in price were lemon with an annual decrease of 26.95% and avocado, with a 6.36% decrease.

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