Puerto Vallarta, Mexico – In a recent release of economic data by the National Institute of Statistics and Geography (Inegi), it was revealed that consumer inflation in Mexico accelerated in the final month of 2023, closing the year at a level of 4.66%. This figure remains above the target set by the Bank of Mexico (Banxico).
The National Consumer Price Index (INPC) for December 2023 recorded a monthly variation of 0.71%. On an annual basis, the inflation rate reached 4.66 percent. While this is a decrease from the high levels observed in 2022, when inflation exceeded 8%, it continues to exceed Banxico’s objective of maintaining inflation at 3%, with a tolerance range of plus or minus one percentage point.
Economists had anticipated this acceleration in inflation for the last two months of 2023. They also project that in 2024, prices will continue to move closer to Banxico’s target. Furthermore, an acceleration is expected in January, commonly referred to as the “January slope.”
While inflation has been steadily approaching Banxico’s objective, analysts caution that as it gets closer to the goal, achieving convergence becomes increasingly challenging. The Bank of Mexico, under the leadership of Victoria Rodríguez Ceja, has maintained a record-high interest rate of 11.25% in response to the persistent high levels of inflation. It is anticipated that this rate will only return to the central bank’s target by the end of 2024.
The report also highlighted that the greatest pressure on inflation came from merchandise within the core inflation category. In December, the prices of goods increased by 4.89%, while services became 5.33% more expensive. This led to underlying inflation, which excludes goods and services with more volatile prices from its calculation, standing at 5.09%.
In contrast, non-core inflation exhibited an annual rate of 3.39%. Internally, agricultural products experienced an inflation rate of 5.66%, while energy prices and government-authorized tariffs increased by 1.46 percent.
These inflationary trends in Mexico’s economy continue to be closely monitored, both domestically and internationally, as they have implications for monetary policy and the overall economic landscape.
Please note that the data and information provided in this article are based on official reports and economic indicators as of the time of writing.
Puerto Vallarta, Mexico - In a recent release of economic data by the National Institute of Statistics and Geography (Inegi), it was revealed that consumer . . .
