Inflation surprises in Mexico and declines in the first half of February

MEXICO CITY.- The annual inflation in Mexico reached 4.45% in the first half of February, rate per below expectations by specialists, reveal the data published by the National Institute of Statistics and Geography (Inegi).

In the first fortnight of the second month of the year, the National consumer price index observed a decline of 0.1% compared to the immediately previous period, its first decrease for said period since 2019.

The general increase in prices in the first half of February was below the analyst consensus which was 4.73% annually, and even less within the range of their expectations, which ranged from a minimum of 4.53% to a maximum of 5.1% predicted by the 35 financial institutions consulted by CitiBanamex.

The biweekly decrease was mainly influenced by the decrease in the price of some agricultural goods, among which stand out: tomatoes with a biweekly decrease of 35.4%; green tomato, -13.1%; zucchini, -11.8%; poblano chile, -11.2%; and chicken, -1.4%.

The underlying price index, which includes goods and services – whose prices are less volatile – registered a biweekly growth of 0.2% and an annual growth of 4.6%, lower than the 4.8% observed in the previous fortnight. Inside, the prices of goods increased 4.1% at annual rate and services, 5.3%.

In the same period, the non-core price index fell 1.1% biweekly, with which its annual increase was 3.9% compared to the increase of 5.3% observed in the immediately previous period. Within the index, the prices of agricultural products grew 5.7% at an annual rate, while those of energy and tariffs authorized by the government increased 2.4%.

Finally, the Minimum Consumption Basket Price Indexwhich evaluates the prices of 176 products and services that comprise it, contained in the food and non-food basket of the National Council for the Evaluation of Social Development Policy (Coneval), had a biweekly variation of -0.2% and an annual increase of 4.14%.

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