**Inflation and GDP Growth in Mexico: An Economic Update for November 2024**
In the first half of November 2024, Mexico experienced an inflation rate of 4.56% on an annual basis, slightly decreased from the 4.83% reported in the latter half of October, as stated by the National Institute of Statistics and Geography (INEGI). The National Consumer Price Index (INPC) saw a 0.37% rise compared to the previous period, marking the highest increase for this specific timeframe since 2020.
Within the first half of November 2024, notable price increases were registered for electricity (up by 22.27%), papaya (up by 15.83%), onions (up by 14.88%), professional services (up by 8.13%), and air transport (up by 7.21%). Conversely, significant price decreases were observed in zucchinis (down by 14.17%), lemons (down by 11.48%), cinema tickets (down by 7.29%), avocados (down by 5.14%), and carrots (down by 4.88%).
The Core Price Index, which includes less volatile goods and services, increased by 0.04% in the first half of November 2024, with an annual rise of 3.58%, a drop from the previous period’s 3.74%. The prices of goods rose 2.46%, and those of services went up by 4.85% from the previous year. The Non-Core Price Index rose by 1.44% fortnightly, with an annual increase of 7.64%, slightly lower than the 8.20% observed in the preceding period.
Agricultural product prices surged by 11.33% annually, while energy prices and government-authorized tariffs increased by 4.18%. Meanwhile, the Minimum Consumption Basket Price Index, which assesses 176 products and services, recorded a 0.54% bi-weekly increase and a 4.27% annual rise during the first half of November 2024.
Certain regions, including Sonora, Sinaloa, Baja California, Baja California Sur, and Tamaulipas, experienced inflation rates above the national average, whereas Quintana Roo, Aguascalientes, Michoacán, the State of Mexico, and Mexico City saw below-average changes.
On the same day, INEGI reported a 1.1% growth in Mexico’s Gross Domestic Product (GDP) for the period from April to June 2024. Agricultural, fishing, and mining activities grew by 4.9%, surpassing the preliminary estimate of 4.6%, while service sectors improved by 1.1%, exceeding the earlier forecast of 0.9%. Manufacturing activities held steady at 0.9%. On an annual basis, the GDP grew by 1.6% in the third quarter, slightly higher than the initially estimated 1.5%.
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**Related Economic Developments in Mexico**
In November 2024, Mexico’s government has been closely monitoring inflation trends, acknowledging the challenges posed by fluctuating agricultural prices and energy costs. Economic analysts suggest that steps to stabilize energy supplies and manage agricultural productivity could help mitigate inflation pressures in the coming months.
Additionally, recent trade discussions have highlighted Mexico’s position in the regional economic landscape, emphasizing the importance of maintaining stable trade relations, particularly through agreements like the USMCA. Canada has reiterated its commitment to remain within this trade framework, with Mexican cooperation playing a crucial role in ongoing negotiations.
These developments underscore the interconnected nature of economic policies and market conditions, as Mexico aims to balance domestic growth priorities with external economic integration.