Mexico’s inflation slowed down and stood at 4.64% year-over-year at the end of August, the lowest level recorded in more than two years, according to figures published by the National Institute of Statistics and Geography (INEGI).
“In August 2023, the National Consumer Price Index [INPC] presented a variation of 0.55% compared to the previous month. With this result, annual headline inflation stood at 4.64%,” the report from the state agency indicates.
Inflation in Latin America’s second-largest economy is close to the monetary and financial authorities’ target, which is a range of between 2% and 4% per year.
“In the same month of 2022, monthly inflation was 0.70% and annual inflation was 8.70%,” the report said.
The core price index, which rules out commodities that show seasonal price volatility, rose 0.27% month-on-month and 6.08% year-on-year.
“Within the core index, at a monthly rate, the prices of goods increased 0.24% and those of services, 0.31%,” the report showed.
The non-core price index, which includes all the products in the basket, grew 1.44% at a monthly rate and 0.37% at an annual rate.
“Within the non-core index, at a monthly rate, the prices of agricultural products rose 1.74% and those of energy and tariffs authorized by the government rose 1.17%,” INEGI said.
The Mexican economy will grow by 2.9% at the end of this year, according to the estimate of the Economic Commission for Latin America and the Caribbean (ECLAC) published on Tuesday, which is an upward adjustment compared to its previous estimate of 1.5%.
