**Inflation Declines for Two Consecutive Months, Standing at 4.58% in September**
Inflation in Mexico has continued its downward trend for the second consecutive month, with an annual variation of 4.58 percent in September 2024, as reported by the National Institute of Statistics and Geography (INEGI) on October 9. The National Consumer Price Index (INPC) showed a minimal monthly increase of 0.05 percent, marking the lowest level recorded for the month of September.
Core inflation, which tracks the prices of goods and services with less volatile prices, registered a monthly rise of 0.28 percent. This adjustment brought the annual rate down from 4.0 percent in August 2024 to 3.91 percent in September, marking 20 months of consistent reductions and reaching its lowest rate since February 2021. Within the core index, the prices of goods increased by 0.21 percent monthly and 2.92 percent annually, while services saw a monthly rise of 0.35 percent and an annual increase of 5.1 percent.
The Non-Core Price Index experienced a monthly reduction of 0.72 percent in September 2024, with an annual rise of 6.5 percent, down from 8.03 percent in August of the same year. Agricultural product prices saw a monthly decline of 1.65 percent, resulting in an annual growth of 6.76 percent. Additionally, energy costs and government-authorized tariffs slightly increased by 0.03 percent monthly and 6.01 percent annually.
The products with the most significant price decline contributing to the overall decrease in inflation were tomatoes (-17.5%), oranges (-20.9%), professional services (-14.8%), bananas (-10.9%), zucchini (-16.1%), chayote (-20.9%), avocados (-7.7%), sugar (-3.9%), chicken (1.5%), and low-octane gasoline (-0.3%). Alternatively, products whose price increases had a notable inflationary impact included limes (22.2%), papayas (15.3%), primary school tuition (5.7%), university fees (1.2%), eggs (1.3%), taxi fares (1.4%), LP domestic gas (0.9%), local eateries (0.5%), and private housing (0.3%).
States exceeding the national inflation average included Baja California (0.51%), Sinaloa (0.48%), Campeche (0.45%), Durango (0.39%), and Sonora (0.29%). Conversely, the states with inflation rates below the average were Oaxaca (-0.57%), Michoacán (-0.33%), Hidalgo (-0.32%), Tlaxcala (-0.32%), and Guerrero (-0.28%).
Lastly, the Minimum Consumption Basket Price Index, which monitors the prices of 176 essential goods and services outlined by the National Council for the Evaluation of Social Development Policy (CONEVAL), showed a monthly decline of 0.01 percent and an annual increase of 4.01 percent.
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**Secondary Article: Mexican Inflation Trends and Economic Outlook**
In recent months, Mexico has shown a positive trend in tackling inflation, with measures aimed at stabilizing the economy. The government has adopted stricter fiscal policies and introduced reforms intended to boost consumer confidence and economic growth. Analysts suggest that these actions might contribute to the persistence of lower inflation rates in the near future, although challenges such as global economic uncertainties and commodity price fluctuations remain.
Additionally, a recent focus on energy sector reforms aims to mitigate price volatility, which has been a significant contributing factor to past inflation spikes. Mexico’s commitment to sustainable energy initiatives and improvements in infrastructure could potentially stabilize energy prices, benefiting the broader economy.
As the country continues to navigate post-pandemic economic recovery, careful monitoring of inflation trends and proactive policymaking will be crucial to maintaining economic stability and fostering growth. Stakeholders remain optimistic yet cautious, emphasizing the importance of adaptive economic strategies to address both immediate and long-term challenges.