Food keeps inflation through the roof;  It reached 8.76% in the first half of September

Food keeps inflation through the roof; It reached 8.76% in the first half of September

Food continued to pressure consumer prices, with inflation slowing slightly in the first half of September, according to information from the National Institute of Statistics and Geography (Inegi).

The National Consumer Price Index (INPC) showed a semi-monthly advance of 0.41% in the first half of the national month. In doing so, the inflation rate was 8.76% annually, just below 8.77% in the past two weeks.

The market expected that during this period, inflation would decline further and stand at the level of 8.71%, according to a Reuters survey.

In recent months, both Mexico and the rest of the world have had to contend with high levels of inflation, which has hurt the purchasing power of families, especially those with lower incomes.

In Mexico, inflation remains above the target range of the Bank of Mexico (Banxico) of 3% +/- 1 percentage point, as the institution headed by Victoria Rodriguez Sega tightened its monetary policy, which led to its interest. The rate, so far, is at 8.50 percent.

Meanwhile, the government of AndrΓ©s Manuel Lopez Obrador promised to strengthen the measures of the Package Against Inflation and Scarcity (PACIC), which was introduced last May and, according to analysts, had little impact on the level of inflation.

The downward pressure continues

In the Inegi report, it was noted that, again, despite the generalization of price increases, the greatest impact is on core inflation, which eliminates from its account the goods and services with the most volatile prices, which are taken into account. for monetary policy decisions.

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In the first half of September, core inflation was 8.27 percent. This data comes as a result of increases in merchandise prices by 10.75% compared to the year, as food, beverages and tobacco exert strong pressure, up 13.27%.

In the case of services, it was observed that these led to a 5.43 percent increase in their prices.

On the non-core inflation front, the annual increase was 10.22%. Here, the agricultural sector was the most pressured, with its price up 15.23% due to increases in animal products, as well as fruits and vegetables.

In the case of energy prices and government tariffs, inflation was 6.20%.

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