**Inflation in Mexico Drops to 4.66% in Early September**
During the first half of September 2024, Mexico’s annual inflation rate fell to 4.66%, a decrease from the previous month’s figures, according to data published by the National Institute of Statistics and Geography (INEGI).
The National Consumer Price Index (INPC) saw a slight increase of 0.09% compared to the previous period, marking the lowest rate for this timeframe since records began in 1988. The underlying price index, which includes less volatile goods and services, grew by 0.21% in the first half of September and 3.95% annually, down from 4.01% in the prior half-month period.
Within this index, the prices of goods rose by 2.94%, and services saw an increase of 5.15% compared to the same period last year. The non-core price index dropped by 0.31% bi-weekly, resulting in an annual rise of 6.73%, down from the previous 7.27%. Agricultural product prices increased by 6.50% annually, while energy and government-regulated tariffs went up by 6.67%.
Key commodities that contributed to the decline in inflation included oranges, which fell by 13.6%; tomatoes, down by 9.5%; bananas, 5.2%; avocados, 6.0%; zucchinis, 8.0%; chicken, 0.5%; low-octane gasoline, 0.2%; and sugar, which decreased by 2.3%.
Additionally, the Minimum Consumption Basket Index, which tracks the prices of 176 products and services included in the food and non-food basket by the National Council for the Evaluation of Social Development Policy (CONEVAL), showed a bi-weekly variation of 0.1% and an annual increase of 4.47%.
The inflation rate has now been above the Bank of Mexico’s (BANXICO) price stability target of 4% (+/- 1 percentage point) for 85 consecutive periods since March 2021.
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### **Additional Insights: Recent Trends in Mexico’s Inflation**
Recent reports indicate that the downward trend in Mexico’s inflation aligns with global patterns influenced by fluctuating commodity prices and energy costs. Analysts suggest that agricultural outputs and international trade dynamics significantly impact the stability of consumer prices.
In particular, favorable weather conditions have led to bumper crop yields, aiding in the reduction of agricultural commodity prices. Conversely, energy sector volatility remains a cause for concern, attributing to fluctuations observed in fuel prices and government-regulated energy tariffs.
Moreover, the Central Bank’s monetary policies aimed at curtailing inflation have started to yield positive results. Interest rate adjustments and stricter regulatory measures are integral to these efforts, as policymakers strive to maintain economic stability in the face of global uncertainties.
As we move forward, monitoring these factors will be crucial to understanding the trajectory of inflation and its broader economic impact. Authorities remain vigilant, ready to implement additional measures should inflationary pressures resurface.
Stay tuned to TJGringo.com for continued updates and expert analysis on Mexico’s economic outlook.