Inflation moderates to 7.45% but remains under pressure. “The core of the problem remains”, says Banxico’s deputy governor, Jonathan Heath.
(MEXICO – EF) In the first fortnight of December, inflation in Mexico slowed to 7.45 percent annual rate, from 7.7 percent in the previous fortnight. Still, the core index remained under pressure and continued to rise to its highest level in 20 years.
The underlying index increased to 5.87 percent at an annual rate, the highest figure since October 2001. However, the non-core index rose 12.34 percent annually, less than the 13.55 percent reported in the second fortnight of November, according to INEGI records.
“The most volatile inflation component decreases, while the core component continues to rise. Although headline inflation manages to decelerate at the margin, this is not good news, as the core of the problem persists,” noted the deputy governor of the Bank of Mexico, Jonathan Heath, on his Twitter account.
La inflación subyacente sigue su marcada tendencia al alza al alcanzar 5.87% en la primera quincena de diciembre, producto de incrementos en los precios de mercancías alimenticias (7.89%), mercancías no alimenticias (6.56%) y servicios distintos a vivienda y educación (6.39%). pic.twitter.com/NKLSRAE7QQ
— Jonathan Heath (@JonathanHeath54) December 23, 2021
He added that core inflation continues its marked upward trend, reaching 5.87 percent, as a result of increases in the prices of food commodities (7.89 percent), non-food commodities (6.56), and services other than housing and education (6.39).
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