Mexico’s inflation accelerated to 8.7 percent year-on-year through August due to the prices of some agricultural products and food, according to the National Institute of Statistics and Geography (Inegi) on Thursday.
The autonomous agency’s report said that the National Consumer Price Index (INPC) rose 0.70 percent in August from the previous month.
“In the same month of 2021, monthly inflation was 0.19 percent and annual inflation was 5.59 percent,” the document said.
Core inflation, considered a benchmark for the decisions of Mexico’s central bank, rose 0.80 percent in the month and reached 8.05 percent in the annual variation.
In August, the price of onions rose 54.41 percent from the previous month, while prices in food establishments rose 1.20 percent, Inegi said.
In a separate report, Grupo Financiero Monex said that the August result “represents a new shock” to the inflation trend.
“With this, inflation is consolidating well above the 8.0% threshold, which was only crossed in July, and given the evolution of the outlook in energy markets, it may be another eight months before it falls below these levels,” warned.
Mexico recorded its highest annual inflation rate in more than two decades at the end of 2021, at 7.36 percent, due to the spread of the new coronavirus (COVID-19).
The Bank of Mexico has set an inflation target of 3.0%, with an upward and downward tolerance margin of one percentage point.