Mexico’s inflation rises to 4.55% in Nov

Mexico’s annual inflation rate climbed to 4.55 per cent in November 2024, driven by higher energy prices and adjustments to electricity tariffs, according to data released by the National Institute of Statistics and Geography (INEGI).

The monthly inflation rate rose by 0.44 per cent, marking a deceleration from the 0.64 per cent recorded in November 2023, when annual inflation was 4.32 per cent.

The core inflation index, which excludes volatile items such as energy and agricultural products, rose by 0.05 per cent monthly and 3.58 per cent annually. Within this category, the prices of goods declined by 0.27 per cent, while services increased by 0.35 per cent.

In contrast, the non-core index surged by 1.73 per cent monthly and 7.60 per cent annually, reflecting sharp increases in energy costs and agricultural product prices. Energy prices and government-regulated tariffs jumped 2.64 per cent in November, largely attributed to the expiration of summer electricity subsidies in 11 cities covered by the INPC.

The report underscores ongoing inflationary pressures, particularly in non-core categories, which may influence monetary policy decisions as Mexico’s central bank seeks to balance economic stability with price control measures.

Attribution: ÍNDICE NACIONAL DE PRECIOS AL CONSUMIDOR (INPC) Noviembre de 2024

Subediting: Y.Yasser