### Inflation in Mexico Climbs to 5.57% in July 2024; Highest Since May 2023
**By**: Alberto Reyes
Inflation in Mexico surged to an annual rate of 5.57% in July 2024, marking the highest level since May 2023, when it reached 5.84%, according to data released by the National Institute of Statistics and Geography (INEGI) on August 8, 2024.
The National Consumer Price Index (INPC) reported a 1.05% increase for July 2024 compared to the previous month. This rate is the highest since November 2021, which recorded a 1.14% hike, making it the most significant July increase since 1996.
Core inflation, which includes goods and services with less volatile prices, saw a monthly rise of 0.32%. It decreased from an annual rate of 4.13% in June 2024 to 4.05% in July, marking 19 consecutive months of reductions to its lowest rate since April 2021.
Within core inflation, goods saw a monthly increase of 0.12%, leading to an annual rise of 4.05%, while services grew 0.55% monthly and 5.22% yearly.
The non-core price index jumped by 3.29% in July 2024 and saw an annual increase of 10.36% compared to 7.67% in June. Agricultural products experienced a 5.0% monthly increase, culminating in a 13.72% annual rise. Additionally, energy prices and government-regulated tariffs increased by 1.69% monthly and 7.31% annually.
Notably, tomatoes saw a monthly increase of 33.3%, onions 25.1%, oranges 18.6%, avocados 17.0%, LP domestic gas 6.7%, pork 4.8%, and eggs 3.7%. Conversely, some products experienced price drops, including serrano chilis by 18.35%, grapes 18.97%, sugar 2.41%, automobiles 0.41%, green tomatoes 4.68%, papayas 3.39%, and limes 2.77%.
Regarding regional trends, Guerrero experienced the highest price variation at 1.63%, followed by Zacatecas at 1.52%, Oaxaca at 1.42%, Chiapas at 1.42%, and Jalisco at 1.36%. On the lower end, Quintana Roo saw a variation of 0.53%, Yucatán 0.58%, Campeche 0.65%, Baja California Sur 0.68%, and Querétaro 0.70%.
The Minimum Consumption Basket Price Index, which includes 176 products and services based on CONEVAL’s food and non-food baskets, showed a monthly increase of 1.22% and an annual rise of 5.60%.
### Additional Insights into Mexico’s Inflation Trends
Following the primary inflation report in Mexico, further sources indicate that economists are expressing concerns over prolonged inflationary pressures, primarily driven by food and energy prices.
According to experts, the persistent rise in prices for essential goods could exacerbate economic inequalities, affecting lower-income households disproportionately. The rising costs of agricultural products, coupled with volatile energy prices, have been particularly challenging.
Moreover, policymakers face the difficult task of balancing economic growth with inflation control. The central bank may consider adjustments to interest rates to curb inflation, but such measures could slow economic recovery post-pandemic.
In addition to domestic challenges, international factors such as global supply chain disruptions and geopolitical tensions are contributing to inflationary trends, complicating efforts to stabilize prices.
For more updates and detailed analysis on Mexico’s inflation and economic policies, stay tuned to TJGringo.com.