During the first half of October, inflation in Mexico accelerated to 4.69 percent annually, interrupting a streak of five periods of moderation, according to INEGI. This increase exceeded market expectations, which were 4.66 percent annually. The acceleration of prices was mainly due to the non-core component, which rose to 7.17 percent annually in the first half of October.
In the breakdown of core inflation, goods prices showed an inflation of 2.89 percent annually, slightly below the end of September. On the other hand, services moderated to 5.03 percent annually in the first half of October. Within services, the largest bi-weekly increases were observed in air transportation, home ownership, and in lunch counters, small eateries, tortilla shops, and taco stands.
The National Consumer Price Index (INPC) recorded an increase of 0.43 percent in the bi-weekly comparison, which was higher than the same period last year. The core component had a bi-weekly increase of 0.23 percent, similar to that observed the previous year, while the non-core component surged by 1.08 percent.
The surge in inflation was explained by the acceleration of agricultural prices, which rose from 7.02 percent to 9.66 percent annually. This increase was mainly reflected in the rise in prices of fruits and vegetables. On the other hand, energy prices and government-approved rates moderated to 4.69 percent annually in the first half of October.
In the bi-weekly comparison, energy prices surged by 2.25 percent, with electricity being the most influential in this increase. This was due to the end of the electrical tariff program that had been in effect in various cities across the country during the month of October.
