Inflation in Mexico accelerates to 7.72% in the first half of April, its highest level in 21 years

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The National Consumer Price Index (INPC) stood at 7.72% at the interannual rate, a level not seen since January 2001, according to Inegi.

inflation in Mexico accelerated in the first half of April, exceeding market expectations, reinforcing expectations that the Bank of Mexico will continue to raise its key interest rate.

The National Consumer Price Index (INPC) stood at 7.72% at the interannual rate, a level not seen since January 2001, according to figures released on Friday by the National Institute of Statistics and Geography (Inegi). Analysts anticipated a rate of 7.60%.

For its part, subjacent inflation, considered a better parameter to measure the trajectory of prices because it eliminates high volatility products, registered a variation of 7.16%, also higher than expected.

Banxico, which has a permanent inflation target of 3% +/- one percentage point, has raised the reference rate by a total of 250 basis points in its last seven monetary policy meetings to its current level of 6.5%.

His next decision is scheduled for May 12 and analysts anticipate a further increase of 50 basis points, according to the most recent survey of economic projections by the financial group Citibanamex. 

Only in the first 15 days of April, prices grew by 0.16%, while the core index showed a rate of 0.44%. The products that suffered the most increases in the fortnight were tomatoes and low-octane gasoline, Inegi said. 

Source: forbes.com.mx

Mexico Daily Post