The pressure on the pockets of Mexicans continues to drop. The National Consumer Price Index in Mexico stood at 4.79% in July, down from 5.06% in June and standing at its lowest level since March 2021, according to data published this Wednesday by the Inegi . The figure was slightly higher than expected by analysts’ expectations, who predicted a rate of 4.77% for July. The drop in energy prices and in some foods such as eggs or potatoes have helped to reduce the pressure on the indicator.
Core inflation, which does not take into account fresh food or energy due to their volatility and which determines the trajectory of general inflation, slowed down for the fifth fortnight in a row and rose to 6.64% in July compared to the same month last year. previous year. Compared to the previous month, its variation was 0.39%. In the interior, the prices that continue to rise were those of processed foods, beverages and tobacco with an increase of 9.8% and merchandise with an increase of 7.8%.
Meanwhile, non-core inflation, which includes the most volatile products in price, fell by 0.67% in July, at an annual rate, while in its comparison with respect to June it rose by 0.77%. In the breakdown of the figures, the prices of fruits and vegetables were those that presented the greatest annual increase of 7.1%. On the contrary, energy prices fell 7.8% compared to the same month in 2022.
By product, avocado was one of the foods that became more expensive compared to June, with an increase of 28%, followed by onion, whose price increased 22% and in third place was air transport, which became more expensive by 17 %. In contrast, the goods that became cheaper in July were LP gas, grapes, eggs, potatoes, and tomatoes.
For the sixth consecutive month, inflation in Mexico registers a downward trend, after reaching a peak of 8.77% in August of last year; however, it is still far from the Bank of Mexico’s goal of reaching a rate of 3%. The price escalation data is released one day before the central bank defines its interest rate, which currently stands at 11.25%. The institution headed by Victoria Rodríguez Ceja will announce its monetary policy announcement this Thursday, although forecasts anticipate that the rate will remain at the same levels.
After the publication of the inflation data, the Mexican peso depreciated by 0.12% or two cents, trading at 17.13 units per dollar. The director of analysis of Banco Base, Gabriela Siller, warns that this downward data increases the probability that the Bank of Mexico will keep the interest rate unchanged at 11.25%, despite the fact that in the United States the Reserve The Federal Reserve made an increase on July 26 and some Fed officials consider that it might be necessary to continue raising the rate in the following months. “By keeping the rate unchanged, the monetary stance is expected to tighten in absolute terms. Due to the above, it is still probable that the exchange rate returns to levels below 17.00 pesos per dollar, ”he settles.
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