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News Article

Consumer Prices at Their Highest Since 2012

By Emilio Aristegui | Thu, 11/11/2021 - 10:00

Mexico’s economic recovery might see a major setback as prices for numerous goods continue increasing as revealed by INEGI’s National Consumer Price Index.

INEGI’s October 2021 report reveals that consumers prices rose by 0.84 percent in comparison to the previous month, generating concerns on the country’s overall economic outlook. In comparison to October 2020, which was severely affected by the economic effects of the COVID-19 pandemic, October 2021 was meant to be a breath of fresh air for the country. That was sadly not the case as Mexico registered a higher monthly inflation rate, 6.24 percent according to INEGI. This is 2.15 percent higher than October 2020’s 4.09 percent.

The underlying price index also presented a monthly and annual increase. The non-core price index also registered a major setback, recording steep monthly and annual rises. Merchandise prices went up 0.60 percent on the monthly register and services increased 0.38 percent in the same period.

The prices of agriculture and livestock products rose 0.18 percent, according to the non-core price index. On the other hand, tariffs and energy prices grew a whooping 3.22 percent as INEGI’s report attributes the growth to the seasonal electricity tariff program of summer in 18 cities.

However, INEGI warns that its measuring practices were affected by closures. “Since April 2020 and still in the second half of October 2021, the collection of prices faced temporary closure or limitation of activities in establishments where INEGI quotes the INPC products on a regular basis.” The lack of complete information may have affected results but its impact could be minimal. INEGI states that the lack of information on available prices only affected 0.04 percent of the weighing of the national basket.

Out of Mexico’s 32 states, Tabasco, Coahuila and Nuevo Leon registered the highest increase in National Consumer Price Index during October 2021, with 2.45 percent, 2.29 percent and 2.26 percent, respectively. Mexico City, San Luis Potosi and Puebla fared better registering increases of 0.36 percent, 0.39 percent and 0.40 percent, respectively.

The data used in this article was sourced from:  
INEGI
Emilio Aristegui Emilio Aristegui Junior Journalist and Industry Analyst