Mexico closes 2022 with an annual inflation of 7.82%

The Mexican inflation rate reached 7.82% annually in December, the highest level for a year-end in 22 years and so far this century, the National Institute of Statistics and Geography (Inegi) reported on Monday.

In addition, the consumer price index (CPI) rose 0.38% compared to November, when annual inflation had fallen to 7.8%, the autonomous body added in its report.

In December 2021, just one year ago, annual inflation was 7.36%, its highest year-end closing in 2 decades, while monthly inflation was 0.36%, according to the Inegi recalled in its report.

By products

The underlying price index, considered a better parameter to measure general shortages because it eliminates items with high volatility in their prices, rose 0.65% monthly and 8.35% annually, detailed the Inegi.

While the non-core item fell 0.40% at the monthly rate, although it increased by 6.27% year-on-year.

Within the underlying goods and services subgroup, merchandise increased 0.74% in the month and 11.09% in the year. While services advanced 0.53% monthly and 5.19% annually.

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In non-core, agricultural prices rose 0.50% compared to the immediately preceding period and 9.52% compared to the same period last year.

Energy and tariffs authorized by the Government decreased by 1.15% in the month, but advanced by 3.66% in the year.

Finally, the price index of the minimum consumption basket, made up of 176 products and services, presented an increase of 0.37% monthly and 8.54% year-on-year.

The Inegi also announced that in December the producer price index, including oil, rose by 4.88% at the annual rate, below 10.32% in December 2021.

rising inflation

Consumer prices closed in 2021 with a rise of 7.36%, a level not seen in 2 decades, given the rise in basic inputs such as agricultural or energy.

The data for 2022 is more than double the goal of 3% per year established by the Bank of Mexico (Banxico), which to face the rise in prices has raised the interest rate 13 times to a record of 10.5%.

The president, Andrés Manuel López Obrador, has criticized the increase in rates and has boasted of “unorthodox” measures that have prevented, according to his calculations, inflation from exceeding 10% per year.

The president first promoted a “Package against inflation and high prices” (Pacic) last May, which included more than 300,000 million pesos (about US$15,000 million) in fiscal subsidies for fuel.

And then he promoted an “Opening Agreement against inflation and high prices” in October so that businessmen would commit not to raise basic products.

Source: EFE