Inflation in Mexico rises in the first half of June

Mexico's general inflation rate rose in the first half of June. at 4.51% annually, its third consecutive increase, driven in particular by the rising cost of services and food, the National Institute of Statistics and Geography (INEGI) reported on Tuesday.

The data, above market expectations, It is higher than the 4.42% of the entire May, and it is also higher than the 4.21% with which it closed 2024.

The consumer price index (CPI) increased by 0.10% compared to the previous 15 days, according to INEGI, which noted that in the same period in 2024, biweekly inflation was -0.21% and annual inflation was 4.78%.

The core price index, considered a better measure of price increases because it excludes highly volatile items, increased by 0.22% biweekly and 4.20% annually, INEGI detailed in its report.

Non-core assets decreased by 0.29% on a biweekly basis, although they increased by 5.25% year-over-year.

Within the underlying subgroup, merchandise increased by 0.19% in the fortnight and by 3.84% for the year.

Services grew 0.25% fortnightly and 4.61% annually.

Among non-core assets, agricultural assets decreased 0.53% compared to the previous period and increased 6.57% compared to the same period last year.

Energy prices and rates authorized by the Mexican government decreased by 0.08% in the two-week period , but increased by 3.92% for the year.

The price index for the basic consumer basket, comprising 170 products and services, rose 0.08% fortnightly and 4.78% annually.

Consumer prices closed 2024 with a rise of 4.21%, below market expectations. and 4.66% in 2023, 7.82% in 2022, and 7.36% in 2021, both years with the highest level in the last two decades.

The figure for the first half of June is above the Bank of Mexico's 3% target. In May, it lowered the interest rate to 8.5%, its seventh consecutive cut and the third of 50 basis points, considering that the "inflationary episode" was over.

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