### Annual Inflation Drops to 5.16% in the First Half of August 2024
During the first half of August 2024, Mexico’s annual inflation rate decreased to 5.16%, marking a decline from the rate reported in the second half of July 2024. This information was released on August 22, 2024, by the National Institute of Statistics and Geography (INEGI).
In the same period, the National Consumer Price Index (INPC) experienced a slight decline of 0.03%, the lowest rate for this period since 2019, which saw a decrease of 0.08%.
The core price index, which includes goods and services with less volatile prices, showed an increase of 0.10% during the first half of August 2024 and an annual increase of 3.98%, down from 4.08% in the previous fortnight. Within this index, the prices of goods rose by 3.07%, and services by 5.11%, compared to the same period last year.
The non-core price index saw a bi-weekly decrease of 0.46%, bringing its annual increase to 8.8%, down from the previous 10.09%. Agricultural product prices increased by 10.95% annually, while energy prices and government-authorized tariffs grew by 6.74%.
The most significant price increases in the first half of August 2024 were seen in products like limes, which grew by 8.37%, squash at 7.38%, high school fees at 2.02%, electricity at 1.90%, and eggs at 1.75%. Conversely, the products with the greatest price decreases included chayote at -45.7%, air travel at -14.5%, green tomatoes at -9.4%, serrano chiles at -8.4%, lettuce and cabbage at -7.3%, tomatoes at -4.9%, LP domestic gas at -1.9%, and chicken at -1.3%.
Starting from the first half of August 2024, the INPC will be measured with an updated basket and weighting structure based on the latest household spending patterns, identified by the National Household Income and Expenditure Survey conducted throughout 2022, as reported by INEGI.
Additionally, the Minimum Consumption Basket Price Index, which evaluates the prices of 176 products and services contained within the Council for the Evaluation of Social Development Policies’ (CONEVAL) food and non-food basket, showed a bi-weekly variation of 0.07% and an annual increase of 5.27% in the first half of this month.
### Additional News on Inflation
#### Inflation Trends in 2024
In related news, several economists have noted that inflation trends in 2024 show a general easing in various sectors. This aligns with global efforts to control price increases post-pandemic and amid ongoing geopolitical tensions that impact supply chains. According to recent articles, central banks worldwide are adjusting their monetary policies to counteract inflationary pressures more aggressively, which is also reflected in modest gains in consumer confidence.
#### Global Inflation Comparisons
Globally, countries like the United States and those in the eurozone are experiencing similar trends. For instance, the U.S. saw its inflation rate drop to around 3.5% in recent reports. This decline is attributed to various factors, including improved supply chain logistics and stabilized energy prices. The European Central Bank has also reported a slight decline in inflation rates, suggesting that their tightening measures are beginning to yield results.
#### Future Projections
Analysts are cautiously optimistic about future projections, suggesting that if the current trend continues, inflation rates could stabilize further by the end of 2024. However, they also warn of potential risks, such as unexpected geopolitical events or supply chain disruptions, that could once again influence inflation trends.
By monitoring these developments closely, policymakers and businesses can better prepare for the evolving economic landscape, ensuring a more stable economic environment moving forward.
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