This shows inflation is stubborn to return to the Bank of Mexico (Banxico) goal of 3% +/-1 percentage point.

Consumer inflation in Mexico continued to accelerate in the first half of April, according to information released by the National Institute of Statistics and Geography (Inegi).

The National Consumer Price Index (INPC) reported a biweekly variation of 0.09% in the first half of the month, while the 12-month rate stood at 4.63%.

The latter means an acceleration from the 4.42% reported in March.

In this context, inflation continues to resist returning to the Bank of Mexico (Banxico) goal of 3% +/-1 percentage point.

In recent days, Victoria Rodríguez Ceja, governor of Banxico, declared that the effort against inflation is not yet finished, so the Bank will remain attentive to price evolution. She noted that services inflation has not shown any respite.

"This is mainly due to the fact that companies have not finished transferring the higher production costs faced since the pandemic into final prices," he declared.

Services, the greatest pressure

The INPC showed that services continue to be the greatest pressure on overall inflation and core inflation (which excludes products and services with more volatile prices).

In the first half of April, core inflation increased 4.39% annually.

The above was explained given that merchandise prices increased by 4.39% annually, while services increased by 5.21%.

Meanwhile, non-core inflation stood at 5.38% in the 12 months to the first half of April.

The above was explained by a 6.98% increase in agricultural products. In the meantime, energy prices and tariffs controlled by the government showed an inflation of 4.01%.