Economic activity had a marginal increase of 0.3% in February: Inegi

Mexico's economic activity increased by just 0.3% in February compared to January, according to anticipated estimates released on Tuesday in the Timely Indicator of Economic Activity (IOAE), carried out by the National Institute of Statistics and Geography (Inegi).

According to the IOAE - which estimates the performance of the economy in advance before the publication of the general index of the Global Indicator of Economic Activity (IGAE), a benchmark of monthly GDP - it also reported that the activity of the Mexican economy grew by 2.8% year-on-year in February.

Inegi explained that for the Large Sectors of Activity of the IGAE, an annual increase of 3.5% is estimated in Secondary Activities (industry) and 1.6% in the Tertiary Sector (services and trade), according to seasonally adjusted figures.

“If these projections were to be realized, the Mexican economy would have grown four consecutive months, something that has not happened since the end of 2020,” said Janneth Quiroz, deputy director of Analysis at Monex, quoted by the newspaper La Jornada.

However, the marginal progress achieved in February would confirm that the economic recovery in Mexico is slow, while inflation continues to increase.

On March 9, Inegi announced that the National Consumer Price Index (CPI) stood at 7.28% at an annual rate in the second half of February, but according to analysts, inflation levels will continue to rise in the short term.

Several experts pointed out that the conflict between Russia and Ukraine - which is about to be one month old - has triggered commodity prices around the world.

According to Inegi records, the underlying price index had a variation of 6.59% per year in February, the highest since June 2001.

At a monthly rate, INPC showed a variation of 0.83 percent during that period, the highest since November last year, and was the highest for a second month since 2000.

Among the products and services that have increased their prices the most are domestic gas LP, chicken, lemon and meat.

Another product that has become significantly more expensive is tortilla, which is essential in the diet of Mexicans.

The fact is that the tortilla recorded an annual increase of 18.05% last February, the most important increase in a decade, and that close to its record high of 18.79%, recorded in January 2012.

In Mexico City (CDMX) and in much of the Valley of Mexico, tortilla sells between 20 and 22 pesos per kilo, while in the rest of the country, its cost is between 25 and 27 pesos.

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