Inflation rebounded to 7.72% during the first half of April in Mexico: these are the products on the rise

After the recent spike in inflation affecting Mexico, reaching 7.72%, one of the highest annual figures recorded in the country since January 2001, here we will announce which products were impacted, that is, that they handle the highest prices.

According to the economic gazette, during the first half of April 2022, the National Consumer Price Index (INPC) reported a variation compared to the previous fortnight of 0.16%, the lowest in the last seven fortnights, although higher than that of the same half of 2021 of 0.06%.

The overall increase in prices was the result of a 0.44% increase in the underlying component (which excludes items whose prices fluctuate widely, such as energy and unprocessed food).

What are the products on the rise?

*Tomato (16.65%)

*Chicken (1.74%)

*Corn tortilla (1.14%)

*Low-octane gasoline (0.80%)

*Package tourist services (9.36%)

In contrast, the products or services that stood out due to the drop in their prices were:

*Onion (13.50%)

*Lemon (17.28%)

*Domestic gas (1.75%)

*Banana (7.12%)

According to the report, the states with the highest biweekly inflation were: Chihuahua (+0.70%), Colima (+0.69%), Aguascalientes (+0.58%), Jalisco (+0.58%) and Durango (+0.58%); while the entities with the lowest inflation were Tabasco (-1.68%), Nuevo León (-0.98%); Campeche (-0.79%), Quintana Roo (-0.75%) and Coahuila (-0.73%).

As inflation in the country accelerated, it exceeded market expectations and strengthened those of the central bank, which will continue to rise at a key interest rate.

Core inflation, considered a better parameter for measuring the price trajectory because it eliminates highly volatile products, registered a variation of 7.16%, also higher than expected.

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

Its 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.

In the first 15 days of April alone, prices grew by 0.16%, while the underlying index showed a rate of 0.44%. The products that suffered the most increases in the fortnight were tomato and low-octane gasoline, said INEGI. (Report by Noé Torres).

For its part, inflation in Mexico accelerated during the month of March and reached an annualized rate of 7.45%, the highest in two decades, pressured by price increases in air transport, tourist services and some staples of the Mexican diet such as avocados.

The National Consumer Price Index (INPC) showed an increase of 0.99% in March, compared to the previous month, which brought the annualized rate to the highest record since 2001, the state-owned National Institute of Statistics and Geography (INEGI) reported on Thursday. In February, annualized inflation had been 7.28%.

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