Mexico closed the month of August with annual general inflation of 8.70%, according to the National Institute of Statistics and Geography (Inegi) on Tuesday, where the prices of some agricultural products were those that presented the greatest price increase.
This figure exceeded the estimates of analysts, who expected 8.67% year-on-year in August for the National Consumer Price Index (INPC), which represents a level not seen since December 2000.
This new indicator was above 8.15%, the rate in July, according to Inegi data.
According to the statistical body, the prices of food and beverages increased by 12.94% compared to the same month last year.
The Institute detailed that at a monthly variation (July) the prices of agricultural products rose 0.98% while those of energy and tariffs authorized by the government fell 0.11%.
Given this, Banxico raised its interest rate by 75 basis points on August 11, to 8.5%, and anticipated that it could continue to increase it if necessary to combat price increases.
Last week, the Bank of Mexico (Banxico) raised its forecast for 2022 inflation, warning that the effects of shocks on prices could be prolonged and even worsen.
In its quarterly report, Banxico pointed out that in the third quarter of the year, that is, from July to September, inflation in Mexico will reach its maximum peak, although the decline will not be as fast and the rest of the year will continue with inflationary pressures.
The central bank forecasts that headline inflation will reach 8.1% in the fourth quarter of 2022, that is, in the months from October to December, and core inflation will reach 7.6%, from previous estimates of 6.4% and 5.9%, respectively.
To deal with inflation, the Bank of Mexico has increased the interest rate in its last ten meetings, to its current level of 8.5%, to try to reach the inflation target of 3% +/- percentage point.
The key reference rate in Mexico has reached the level of 8.5% to contain inflation, but perhaps the central bank will have to raise it a little more to help reduce prices, said the deputy governor of Banxico, Gerardo Esquivel.
“We all agree on the (government) board to raise the interest rate and to take it to a level where it begins to work as a containment of inflation,” Esquivel said in an interview he gave last Thursday night to a local media and that he shared on his Twitter account on Friday.
“We have already reached that level now, we may need to go a little further in the restrictive zone to guarantee that the reduction in inflation occurs,” he added.
Esquivel pointed out that subsequent hikes in the key rate, currently at 8.5%, should be done cautiously so as not to affect economic growth.
“Although we have to raise the rate, although we have to take it to a restrictive terrain, we must be careful that this restriction is not excessive so that it does not affect the recovery process in a very significant way,” he added.
Subscribe here to receive our newsletters, access exclusive content, read our news without ads, and much more!
Trending news of PVDN
- There have been 1,719 aftershocks since the September 19 earthquake that shook Puerto Vallarta On September 19, a magnitude 7.7 tremor was recorded in Jalisco at 1:05 p.m. with an epicenter in Coalcomán, Michoacán. From that day and until 6:00 p.m. on September 23, 1,719 aftershocks have occurred, the one that occurred on Thursday was the strongest with a magnitude of 6.9, and woke up the people of Puerto…
- San Pancho and Lo de Marcos, two treasures of the Riviera Nayarit Two of the quietest towns, with the most beautiful beaches of the Riviera Nayarit and perfect for finding yourself, are San Pancho and Lo de Marcos. San Pancho San Francisco, better known as San Pancho, is located 44.8 km north of Puerto Vallarta and 23 minutes from Sayulita on federal highway 200 on the Central…
- Spiderman actor Andrew Garfield spotted vacationing in Puerto Vallarta This Tuesday afternoon Andrew Garfield began trending after his fans in Mexico saw him on the beaches in Puerto Vallarta enjoying the waves on his surfboard. The American actor was seen surfing yesterday and according to some fan accounts, he decided to come to Jalisco for the sole purpose of vacationing and disconnecting from his…
- Another earthquake shakes Puerto Vallarta, second quake this week An earthquake with a magnitude of 6.9 struck Coalcoman, Michoacán at 1:16 AM and was felt in Puerto Vallarta. The first reports indicate that the telluric movement was intensely perceived throughout the state of Michoacán, Jalisco, and Morelos. The Government of Jalisco published on social networks that “after tonight’s earthquake, no damage or injured people…
- Mexico and the United States, two centuries of mistrust The main obstacle to a more fruitful relationship with the United States is overcoming the mistrust that still prevails, on both sides. Opinion by Eduardo Guerrero Gutierrez: On the main stairs of the Chapultepec Castle you can see The Sacrifice of the Children Heroes, by the Jalisco painter Gabriel Flores García. It is an impressive…