**Inflation in Mexico Drops to 4.55% in November: Lowest Level Since 2020**
Inflation in Mexico registered an annual change of 4.55% in November 2024, according to data released by the National Institute of Statistics and Geography (INEGI) on December 9, 2024. This marks the lowest inflation rate for the month of November since 2020.
The National Consumer Price Index (INPC) recorded a monthly increase of 0.44%, showcasing a significant decrease in inflationary pressure. Among the products that notably contributed to the decline in inflation were lemons, with a monthly decrease of 23.5%, zucchinis at -11.1%, carrots at -10.9%, avocados at -7.3%, potatoes and other tubers at -5.5%, and televisions at -4.2%.
Conversely, certain products experienced price hikes, with electricity seeing a considerable increase of 22.3% due to the expiration of a summer electricity tariff program in 11 cities.
Core inflation, which excludes more volatile items such as food and energy, reported a slight monthly increase of 0.05%, dropping from an annual rate of 3.8% in October to 3.58% in November, reaching its lowest level since April 2020. Within the core inflation index, merchandise prices decreased by 0.27% monthly and 2.39% annually, while services rose by 0.35% monthly and 4.9% annually.
Non-core inflation saw a monthly rise of 1.73% and an annual increase of 7.6%, compared to 7.68% in October. Agricultural product prices went up by 0.62% monthly, leading to an annual growth of 10.74%. Energy prices and government-authorized tariffs increased by 2.64% monthly and 4.55% annually.
The Price Index of the Basic Consumer Basket, which examines the prices of 176 essential goods and services, saw a monthly rise of 0.54% and a yearly increase of 4.23%.
On a regional level, states like Sonora, with a 3.38% inflation rate, Sinaloa at 3.08%, Baja California at 1.94%, Baja California Sur at 1.70%, and Tamaulipas at 0.95% experienced higher than average inflation rates.
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**Additional Insights into Mexico’s Economic Landscape**
Recent reports suggest Mexico’s economic trajectory remains cautiously optimistic despite inflationary challenges. Analysts point to a combination of global economic factors and domestic conditions influencing Mexico’s inflation rates. The central bank’s measures to control inflation appear effective, yet global uncertainties, such as energy prices and international trade dynamics, pose ongoing challenges.
In tandem with its fight against inflation, Mexico is focusing on strengthening its domestic industries, fostering innovation, and enhancing trade relations within the Americas. Continued investment in infrastructure and technology aims to bolster the nation’s competitive standing globally.
Economic experts emphasize the importance of watching fiscal policies and external economic pressures, both of which will play significant roles in shaping Mexico’s inflational outlook in the coming months. As Mexico navigates through these variables, sustained economic growth remains an attainable yet delicate balance to maintain.