After a continuous set of strict monetary policies from Mexico’s Central Bank (Banxico), inflation in the country begins to decline, according to the National Institute of Statistics and Geography (INEGI) .
INEGI reported that in April 2023, the National Consumer Price Index (INPC) decreased by 0.02% compared to the previous month. The decrease changed the value of annual headline inflation, which is now at 6.25%. In April 2022, monthly inflation stood at 0.54% and annual inflation at 7.68%, explained INEGI via a press release.
INEGI’s underlying price index registered an increase of 0.39% monthly and 7.67% annually. However, the non-core price index fell 1.25% at a monthly rate and grew 2.12% at an annual rate. The core index presented increases in merchandise prices of 0.50% and in services of 0.25%. “Core inflation is obtained by eliminating from the calculation INPC, the goods and services with more volatile prices or with determination processes that do not respond to market conditions. Thus, the groups that are excluded are agricultural, energy and tariffs authorized by different orders of government,” explains INEGI.
The non-core index at a monthly rate points that the prices of agricultural products remained unchanged and that those for energy and tariffs authorized by the government decreased by 2.30%. INEGI attributed the decrease to adjustments in electricity rates in 18 Mexican cities due to the warm season.
The National Consumer Price Index and its Components reported that the largest increases under the underlying index corresponded to food, beverages and tobacco prices, which increased by 12.14% in April 2023. The non-core index reported that livestock saw the largest increase during the period, with an 8.01% growth in price. Merchandise continues to occupy the largest incidence value, with 3.8 for the underlying index. “The incidence refers to the contribution, in percentage points, of each component of the INPC to general inflation,” explains INEGI.
INEGI also reported that the next update of Mexico’s National Consumer Price Index will be published on June 8, 2023.