Inflation Registers Minimal Increase in November: INEGI

The National Institute of Statistics and Geography reported that the National Consumer Price Index (INPC) registered an increase in inflation in November 2022, as prices continue to rise despite desperate increases in the country’s interest rates by Mexico’s Central Bank (Banxico) to control the escalation of prices. 

“In November 2022, the INPC registered a variation of 0.58 percent compared to the previous month. With this result, annual headline inflation was located at 7.80 percent. In the same month of 2021, monthly inflation was 1.14 percent and the annual 7.37 percent. The underlying price index increased 0.45 percent at a monthly rate and 8.51 percent at an annual rate. The non-core price index grew 0.94 percent at a monthly rate and 5.73 percent at an annual rate,” explained INEGI via a press release.

INEGI explained that the core index showed an increase in merchandise prices of 0.43 percent at a monthly rate. However, it was set back by the 0.48 percent growth in service prices at a monthly rate. The non-core index showed that the prices of agricultural products fell by 0.42 percent. The energy and tariffs authorized by the government presented discouraging results, as prices increased by 2.11 percent at a monthly rate.  

Electricity rates were provided with a subsidy in the summer in 11 Mexican cities, as INEGI attributes the increase in prices to the conclusion of the government program, which was covered by the INPC. The warm season electricity rate program concluded its validity period in November in: Mexicali, Ciudad Juarez, Culiacan, Chihuahua, Hermosillo, Matamoros, Colima, La Paz, Huatabampo, Ciudad Jimenez and Esperanza. 

INEGI explained that the states with the highest variation were Sonora with 3.99 percent, Sinaloa with 3.57 percent, Baja California Sur with 3.06 percent, Baja California with 2.84 percent and Chihuahua with 1.13 percent. The five cities that suffered the highest variations in prices were: Mexicali, Baja California, with 5.52; Hermosillo, Sonora, with 4.23 percent; Esperanza, Sonora, with 4.10 percent; Culiacan, Sinaloa, with 3.57 percent; and Huatabampo, Sonora, with 3.26 percent. 

The National Consumer Price Index showed that restaurants and hotels suffered the largest annual increase in prices by 12.42 percent, followed by alcohol with a 12.41 percent increase and miscellaneous goods and services with a 10.44 percent increase. Communication services were the only field to show a decrease in prices, registering a fall of 5.96 percent in comparison to November 2021. 

“Core inflation is obtained by eliminating the goods and services whose prices are more volatile, or that their determination process does not respond to market conditions from the calculation of the INPC. Thus, the groups that Excluded are agricultural, energy and tariffs authorized by different orders of government,” explained INEGI.