Inflation in Mexico slows down in October and stands at 8.53% year-on-year

Inflation in Mexico slowed down in the current month and stood at 8.53%, reported the National Institute of Statistics and Geography (INEGI).

“In the first fortnight of October 2022, the National Consumer Price Index [INPC] increased 0.44 compared to the previous fortnight. With this result, annual general inflation stood at 8.53%,” published the state agency in a fortnightly report.

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This result is lower than the 8.70% year-on-year reached in September this year, with a national price indicator located at the highest level since December 2000, when it reached 8.96% year-on-year.

“In the same fortnight of 2021, biweekly inflation was 0.54% and annual inflation was 6.12%,” compares the INEGI.

The underlying price index -which discards products that present price volatility according to the seasons of the year- increased 0.42% at a fortnightly rate and 8.39% annually.

In the same fortnightly period, the non-core price index rose 0.48% fortnightly and 8.95% at the annual rate.

Within the underlying index, at a fortnightly rate, the prices of merchandise had marginal growth of 0.53%, and those of services 0.30%. Within the non-core index, which includes all the products of the basic basket, at a fortnightly rate, the prices of agricultural products decreased 0.46% and those of energy and tariffs authorized by the Government increased 1.30%.

The energy prices advanced “due to the conclusion of the subsidy to the electricity rates program for the summer season in 18 cities in the country,” explains the official report.

President Andrés Manuel López Obrador declared that a government plan to reduce food and fuel prices has begun to show results.

He also commented that gasoline prices have not increased, thanks to a government subsidy, while the greatest impact is on the cost of food, with inflation of 4.3%.

López Obrador also recalled that the government signed a special agreement with the Walmart supermarket chain, so that at the entrance of all its stores they present the 24 products of a basic basket, which is sold for Mex$1,039 (about US$52).

The president explained that the Government agreed with three supermarket firms, in compensation, “to give them a license to freely import food, without tariffs, without bureaucratic procedures, and they are responsible for the quality of imported products,” which will not pass for health checks. Walmart distributes 25% of all food in the country, he pointed out.

To contain inflation, on September 29 the Mexican Central Bank agreed to raise the interest rate to a historical maximum of 9.25%, by raising the reference indicator by 0.75 percentage points for the third consecutive time.

With information from Sputnik