**Inflation Rises to 4.76% in October 2024, Reports INEGI**
In October 2024, Mexico saw its annual inflation rate climb to 4.76%, following a two-month period of decline, according to the National Institute of Statistics and Geography (INEGI). This report, released on November 7, 2024, highlights the most significant monthly increase for October since 2022, with a 0.55% rise.
Key contributors to this inflation include a notable surge in electricity prices, which rose by 18.1% following the conclusion of the seasonal summer electricity tariff program in 18 cities. Additionally, various agricultural products saw significant price hikes: nopales increased by 34.7%, papaya by 26.9%, green tomatoes by 23.1%, zucchini by 19.9%, tomatoes by 15.6%, onions by 7.2%, and air transportation by 6.7%.
The core inflation rate, excluding more volatile items, rose by 0.28% monthly, marking 21 consecutive months of decreases, leading to the lowest rate since December 2020. Within this, goods prices increased by 0.24% monthly and 2.81% annually, while services prices rose by 0.32% in the month and 4.98% over the year.
In contrast, non-core inflation saw a 1.46% monthly increase and a yearly rise of 7.68%, up from 6.5% in September 2024. Agricultural product prices advanced by 1.73% monthly, culminating in a 10.92% annual increase. Energy and government-regulated tariffs also climbed by 1.23% monthly and 4.62% compared to the previous year.
The states most affected by inflation were Tabasco (2.24%), Quintana Roo (1.56%), Yucatán (1.40%), Nuevo León (1.39%), and Campeche (1.38%), whereas Aguascalientes, Chihuahua, Baja California, Zacatecas, and Sonora experienced below-average inflation rates.
The Index of Minimum Consumption Basket Prices, which tracks 176 essential products and services, reported a 0.45% monthly uptick and a 4.45% annual increase.
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**Additional Insights on Rising Inflation in Mexico**
Beyond the immediate price hikes mentioned, inflationary pressures in Mexico are shaped by various global and local factors. Analysts suggest that the fluctuation in energy prices directly correlates with international oil markets and domestic policy adjustments. The agricultural produce spike is influenced by seasonal variations and supply chain disruptions.
Consumer sentiment and spending behavior are directly influenced by these inflationary trends, with many citizens adapting by altering their purchasing choices and priorities. Policymakers are closely monitoring these changes to implement potential interventions that could stabilize the economy in the coming months.
The Mexican government’s strategic response to inflation will be crucial in retaining economic balance and ensuring the stability of essential services and goods for its population. Discussions among financial experts indicate potential fiscal reforms and targeted subsidies to mitigate the impact on vulnerable sectors.