Inflation in Mexico picked up in the first half of March, driven largely by higher food prices and increases in certain energy-related services.
According to data from Mexico’s national statistics agency, the annual inflation rate reached 4.63%, with prices rising 0.62% over the two-week period.
Core inflation, which excludes more volatile items, stood at 4.46%. Meanwhile, non-core inflation climbed to 5.18%, reflecting notable increases in agricultural goods, especially fruits and vegetables.
Key price increases
The main contributors to inflation included:
- Tomatoes
- Chicken
- Air transportation
- Electricity
- Informal dining services
- Green tomatoes
Housing-related costs and some produce items, such as potatoes, zucchini, and limes, also moved higher.
Items with falling prices
On the other hand, several categories saw price declines:
- Telecom service bundles
- Eggs
- Pork
- Nopal cactus
- Men’s clothing
- Personal care products
Interest rate outlook
Against this backdrop, analysts expect Mexico’s central bank to consider another rate adjustment in the near term.
Some market perspectives suggest that recent geopolitical developments have added uncertainty, although Mexico’s economy has so far remained relatively resilient.
Source: Expansión
