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Headline Inflation Approaches 5% Amid Agricultural and Energy Price Pressures
Food and beverage prices surged 7.42% annually, with tomato costs spiking 32% in two weeks, pushing inflation well above Banxico's 3% target, complicating monetary policy.
- On Tuesday, INEGI reported that consumer prices in Mexico rose 4.63% annually in early March, a sharp acceleration from 4.02% in late February that caught markets off guard, according to The Rio Times.
- Volatile non-core items drove the surge, with Tomato prices spiking 32% in two weeks and Food costs jumping 8.3%, pushing the non-core index to 5.18% annually.
- Core inflation held relatively steady at 4.46%, well above Banxico's 3% target, while Airfares jumped 21.9% in the fortnight and Chicken also posted sharp increases.
- Monday's economic activity report showed a 0.9% contraction in January, creating a policy dilemma as the currency weakened immediately, reflecting market concerns that Banxico faces difficult easing decisions.
- Of 29 analysts surveyed by Bloomberg, 15 expect rates to remain at 7% while 14 project a cut, as Banxico has already pushed back its inflation-target timeline to 2027.
22 Articles
22 Articles
Agricultural prices – led by tomatoes, green tomatoes and lemons – as well as air transport, triggered general inflation in Mexico at 4.63 percent per year in the first half of March, the strongest rebound since the second half of October 2024, reported the National Institute of Statistics and Geography (Inegi).
Inflation in Mexico Goes Off in March: What Went up, What Went Down and How Does Your Pocket Impact?
Inflation in Mexico continued to accelerate during the first fortnight of March, which was reflected in the rise in the prices of some products from the basic basket.In this period, the National Consumer Price Index (INPC) increased 0.62 percent compared to the previous fortnight and placed annual inflation at 4.63 percent, according to figures from the National Institute of Statistics and Geography (Inegi).This figure exceeded the estimate was …
Headline inflation approaches 5% amid agricultural and energy price pressures
Inflation continues to rise in Mexico, with the annual headline rate approaching 5% in the first half of March. The national statistics agency INEGI reported on Tuesday that the annual headline inflation rate was 4.63% in the first 15 days of the month, up from 4.02% across February. Compared to the second half of February, inflation was 0.62% in early March. It appears almost certain that inflation will rise for a third consecutive month in Mar…
Mexico Inflation Jumps to 4.63%, Complicating Rate Cut
Key Points — Mexico inflation surged to 4.63% in early March, well above the 4.02% recorded in February and nearly double the market expectation of a 0.37% fortnightly increase, with the actual reading coming in at 0.62% — Tomato prices spiked 32% in two weeks and fruit and vegetable costs jumped 8.3%, driving the non-core […] The post Mexico Inflation Jumps to 4.63%, Complicating Rate Cut appeared first on The Rio Times.
Inflation continues to squeeze the pockets of Mexicans. In the first half of March, the National Consumer Price Index (INPC) was 4.63% at an annual rate, according to the report published on Tuesday by the National Institute of Statistics and Geography (Inegi). In the first 15 days of March, prices increased 0.62% compared to the previous fortnight, leaving behind the Bank of Mexico (Banxico)’s goal of placing inflation in a range between a perc…
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