### Inflation in Mexico Drops to 4.99% in August 2024, Ending Five-Month Increase
The inflation rate in Mexico saw an annual decrease to 4.99% in August 2024, down from the 5.57% registered in July, marking its first reduction after a five-month upward trend. The data was released on September 9, 2024, by the National Institute of Statistics and Geography (INEGI).
The National Consumer Price Index (INPC) reported a minimal monthly increase of 0.01%, the lowest for August since 2019, when it decreased by -0.02%. Core inflation, which includes less volatile goods and services, recorded a monthly rise of 0.22%, bringing the annual rate down from 4.05% in July 2024 to 4.0% in August 2024. This marks the 19th consecutive month of decline, reaching its lowest rate since February 2021.
Within the core index, the prices of goods increased by 0.18% monthly and 3.02% annually, while services saw a 0.27% increase in August 2024 and a 5.18% rise on an annual basis. The non-core index, on the other hand, experienced a monthly decrease of 0.7% in August 2024, coupled with an annual increase of 8.03%, down from 10.36% in July. Agricultural product prices fell by 2.08% monthly, resulting in a 9.45% annual growth. Energy and government-authorized tariffs rose by 0.48% monthly and 6.58% annually.
Among the goods with the most significant price drops in August 2024 were chayote (-61.1%), green beans (-20.8%), serrano chili peppers (-17.4%), green tomatoes (-16.8%), poblano peppers (-15.3%), air transport (-14.7%), and tomatoes (-10.1%). Conversely, products with the highest price increases included lemons (18.2%), pineapples (14.2%), grapes (9.5%), peaches (5.1%), potatoes (4.7%), melons (4.0%), eggs (4.0%), and men’s suits (3.6%).
The states with the highest price variations above the national average in August 2024 were Tamaulipas (0.53%), Quintana Roo (0.46%), Baja California (0.36%), Chihuahua (0.28%), and Sinaloa (0.24%). On the flip side, states with price variations below the national average included Tlaxcala (-0.37%), Estado de México (-0.28%), Morelos (-0.24%), Oaxaca (-0.24%), and Hidalgo (-0.23%).
Lastly, the Minimum Consumption Basket Price Index, which evaluates prices for 176 products and services in both food and non-food baskets according to the National Council for the Evaluation of Social Development Policy (CONEVAL), saw a 0.17% monthly increase and a 4.99% annual rise.
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#### Secondary Article: Mexico’s Inflation Trends Align with Global Patterns
While Mexico has experienced a welcomed drop in its inflation rate for August 2024, several countries around the world continue to grapple with their own economic challenges. For instance, the United States reported an inflation rate of 3.7% in August, showing signs of stabilization amid adjustments in interest rates. Similarly, the Eurozone saw its inflation rate decline to 2.3%, down from its previous high of 3%, as energy prices moderated and supply chain issues eased.
In Asia, China reported a modest inflation rate of 1.8%, whereas India experienced an increase to 6.2%, largely driven by rising food prices. Analysts suggest that these fluctuations reflect the complexities of the global economic landscape, which remains vulnerable to geopolitical tensions and market volatility.
For more comprehensive insights, the global economic overview offers a nuanced perspective on how nations are navigating the intricate dance of inflation management.