Mexico City – Mexico’s inflation reached a new high in 2024 according to the National Institute of Statistics and Geography (Inegi). The National Consumer Price Index (INPC) reached 4.98% in June, exceeding analyst predictions and marking the highest monthly increase since June 2022.
This figure surpassed forecasts by financial institutions like Citibanamex (4.87%) and Grupo Financiero Bx+ (4.83%). Core inflation, a predictor of long-term trends, also rose to 4.13% annually. The non-core index, encompassing volatile items like government-regulated prices, grew even faster at 7.67%.
Agricultural products, especially fruits and vegetables, were a significant driver of inflation. They saw a 10.36% annual increase, with specific items like chayote (128.58%), oranges (31.37%), and avocados (17.65%) experiencing substantial price hikes. Conversely, some products like tomatoes (-12.82%), serrano chili (-27.02%), and eggs (-3.10%) saw price decreases.
The Bank of Mexico responded by maintaining the interest rate at 11% but upwardly revised its inflation forecasts. While the Bank anticipates inflation converging towards its 3% target by the end of 2025, Grupo Financiero Base cautions that persistent inflationary pressures could necessitate revising their year-end projection of 4.4% upwards.