INPC Increased 0.68% in January: INEGI

The National Consumer Price Index (INPC) grew by 0.68% in January 2023 with respect to the previous month, reports the National Institute of Statistics and Geography (INEGI). During the month, annual headline inflation stood at 7.91%, which surpassing the 7.07% inflation seen in January 2022. 

INEGI explained that the underlying price index increased by 0.71% at a monthly rate and 8.45% at the annual rate during that month. Meanwhile, the non-core price index increased 0.57% at a monthly rate and 6.32% at the annual rate. INEGI explained that merchandise prices grew 0.91% and services 0.48% at a monthly rate. Prices of agricultural products grew 0.51% and energy and tariffs authorized by the government by 0.62%. At a monthly rate, the core index and the non-core index presented increases in prices. 

Numerous Mexican cities presented variations above the national average. For example, Atlacomulco, State of Mexico, registered the highest variation with 1.72%. Jacona, Michocan, registered a 1.33% variation, which placed the city as the second highest. Iguala, Guerrero, and Tapachula, Chiapas, both registered a variation of 1.14%. 

During the first half of January 2023, INEGI reported that the INPC grew 0.46% in comparison to the previous fortnight. Biweekly inflation stood at 0.39% and annual inflation at 7.13% during that period. Chiapas, Guerrero, State of Mexico, San Luis Potosi and Tabasco presented the largest variations. On the other hand, Baja California Sur, Durango, Tamaulipas, Oaxaca and Guanajuato presented the smallest changes, as reported by MBN. 

James Bullard, President, US Federal Reserve (Fed) explained that inflation might ease up in 2023. “Inflation is too high and remains too high, but it may decline. However, we know energy, commodity and food prices can greatly influence this, so other measures of inflation should be checked to strip out volatile price movements and look at the center price range distribution,” says Bullard. Meanwhile, Banxico continued to raise interest rates, with Mexico following the US's measures regarding monetary policy in all of its most recent decisions, as reported by MBN.

The Fed has announced it will continue to raise interest rates, as the US’s “disinflation” process “has a long way to go,” says Jerome Powell, Chairman, Fed. Powell’s remarks came after the Fed announced its eighth consecutive quarter-point interest rate hike. The Fed's objective is to gradually return inflation to 2%, which it describes as the "global standard," as reported by MBN.