Inflation Rises for Third Consecutive Month due to Increased Food Prices

In January 2024, Mexico’s general inflation was at 4.88%, a significant increase from the monthly rate of 0.89% in November 2023. The National Institute of Statistics and Geography (Inegi) reported that this was the highest variation in the last seven months and extended the negative shock of the increase in fruits and vegetables which began in December.

The Citibanamex survey predicted a monthly increase in the National Consumer Price Index (INPC) of 0.86% for January, nearly matching the actual rate of 0.89%. Tomatoes, onion, and other generic products such as eggs and chili peppers were found to significantly contribute to the steep slope, while air transport and pet food had a downward impact on inflation.

The strong growth in non-core index especially agricultural products, LP gas, and authorized tariffs pressured general inflation. The underlying price index, which excludes energy and fresh food, increased by 0.4% at a monthly rate and 4.76% at an annual rate, which is the lowest for the same month in three years. Guerrero registered the highest inflation in the country with 1.72% monthly and annual at 3.84%, while Baja California Sur presented the lowest of 0.30 percent in January.

By Editor

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