Inflation in Mexico moderated in February, reaching 4.4%

MEXICO CITY.- The inflation in Mexico reported a annual increase of 4.4% in February, more than expected by specialists, according to data published by the National Institute of Statistics and Geography (Inegi).

He National consumer price index reported an increase of 0.09% during last month compared to the immediately previous period, the lowest rate for said month since 2019.

He general price increase In February it was lower than the analyst consensus of 4.44% at an annual rate, and even below the range between a minimum of 4.35% and a maximum of 4.71% predicted by the 33 financial institutions consulted by CitiBanamex.

The February data was the result of the monthly contraction of 8.43% in the prices of fruits and vegetables, highlighting the cases of tomatoes with a drop of 41.8; green tomato, -21.1; poblano chile, 20.7%; zucchini, -7.3%; and egg, 1.8%.

Core inflation which includes goods and services whose prices are less volatile, went from an annual rate of 4.76% in January to 4.64% in February, its lowest rate since June 2021.

Within the underlying index, merchandise prices reported a monthly increase of 0.40% and an annual increase of 4.11%, while services increased 0.61% in the month and 5.3% compared to the same period of the previous year.

Energy prices

For his part, the non-core price index reported an annual increase of 3.67%. Internally, the prices of agricultural products observed a monthly decrease of 4.6%, bringing the annual increase to 4.77%.

Likewise, energy prices and rates authorized by the government increased 2.12% in the month and an annual increase of 2.75%.

With these results, the probability increases that the Bank of Mexico make a 25 basis point cut in its March 21 announcement, he said Gabriela Siller, director of economic analysis of financial group Base.

Finally, the Price Index of the Minimum Consumption Basket, which evaluates the prices of 176 products and services that make it up, contained in the food and non-food baskets of the National Council for Evaluation of Social Development Policy (Coneval), had a monthly variation of -0.07% and an annual variation of 4.04%.