Mexico.– Annual inflation stood at 3.7% during the first half of December, according to the Consumer Price Index released by Mexico’s National Institute of Statistics and Geography (INEGI). This figure marks a slowdown from the 4% recorded in late November.
The reading came in below market expectations, as private-sector analysts had projected inflation at 3.9%, based on a Citi survey of 33 financial institutions and research groups.
At this level, inflation remained within the 2% to 4% tolerance range set by the Bank of Mexico, which targets a long-term inflation rate of 3%.
Among the items with the largest price increases were serrano peppers, which surged 82.7% year over year, followed by roasted coffee (up 28.1%) and instant coffee (up 24.4%). Beef products also posted notable increases, with cuts, ribs and offal rising around 19.6%, while beef steak prices climbed 18%.
On the other hand, some food prices declined ahead of the holiday season. Onion prices fell 22.8% annually, papaya dropped 22.2%, and potatoes decreased by 21.5%.
Following the release of the inflation data, the peso strengthened, with the exchange rate reaching 17.94 pesos per dollar in wholesale trading, according to Bloomberg data.
Source: Uniradio
