In the first half of August, the National Consumer Price Index showed a biweekly decrease of 0.03%.

In the first half of August, consumer inflation in Mexico seemed to ease. According to data released by the National Institute of Statistics and Geography (Inegi), price increases slowed for the second consecutive fortnight, although they remained outside the target range of the Bank of Mexico (Banxico).

In the first half of August, the National Consumer Price Index (NCPI) showed a biweekly decrease of 0.03%, while the annual rate stood at 5.16% from the previous rate of 5.52% in the second half of July.

In the first half of August, consumer inflation in Mexico seemed to ease. According to data released by the National Institute of Statistics and Geography (Inegi), price increases slowed for the second consecutive fortnight, although they remained outside the target range of the Bank of Mexico (Banxico).

In the first half of August, the National Consumer Price Index (NCPI) showed a biweekly decrease of 0.03%, while the annual rate stood at 5.16% from the previous rate of 5.52% in the second half of July.

A few days ago, Jonathan Heath, deputy governor of Banxico and one of the two members of the Governing Board who voted against the rate cut, said that “the time when we will be able to reduce rates more systematically is just around the corner.”

The next monetary policy meeting will be held in September and, according to the Citibanamex Survey, Banxico would cut its interest rate again by 25 basis points.

Non-core increased by 8.80%

The Inegi report showed that the largest increase in prices occurred within non-core inflation, which grew 8.80% in the first half of the month in its annual comparison.

The component that grew the most within this sector was the agricultural component, whose prices rose 10.95% compared to the previous year, mainly due to a 15.89% increase in fruits and vegetables.

In the case of energy and government-authorized rates, the increase in the first half of the month was 6.74%.

In the case of core inflation, which excludes goods and services with more volatile prices from its calculations, the reported rate was 3.98% per year. Within this category, goods rose by 3.07%, while services rose by 5.11%.