Inflation in Mexico falls to 8.41% year-on-year | News

Mexican government authorities confirmed this Wednesday that inflation registered a decrease of 0.57 percent in October compared to the previous month, while the Consumer Price Index in October fell to 8.41 percent compared to the same month of 2021, after in September it registered a variation of 8.70 percent year-on-year.

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According to the National Institute of Statistics and Geography (Inegi), among the prices with the highest level of increase are electricity, tomatoes, milk, corn tortillas, sugar, housing, pasteurized milk, and services. from restaurants and taquerias.

Meanwhile, domestic gas, potatoes and other tubers, onions, avocados, lemons and chicken, as well as mobile phone service, are products with falling prices.

Experts had estimated a monthly inflation of 0.60 percent in October, which implied an annual rate of 8.46 percent. The data confirm that despite the first annual decline in October, headline inflation has registered 20 consecutive months with records above the range established by the Mexican National Bank on price stability (3.0 and 4.0 percent).

“The core price index increased 0.63 percent monthly and 8.42 percent annually. The non-core price index grew 0.38 percent at a monthly rate and 8.36 percent at an annual rate. Within the underlying index, at a monthly rate, the prices of merchandise rose 0.87 percent and those of services, 0.33 percent," said the statement from the National Consumer Price Index.

For the entity, "underlying inflation is obtained by eliminating from the calculation of the National Consumer Price Index (INPC), the goods and services whose prices are more volatile, or whose determination process does not respond to market conditions."

For his part, the president of Mexico, Andrés Manuel López Obrador, expressed during his morning conference that “we have this under control. We do not increase the price of fuel, gasoline, diesel, electricity. This is a policy that we take, different from other countries.”

In this sense, the president indicated that “food prices are already falling at the international level. In any case, we are going to continue with these measures, which are not mandatory price controls, but based on agreements. They are already copying us, we are going to say, it is not the word, in other countries, they are also reaching agreements to face the inflationary problem”.

Regarding the increase in crude oil prices globally, López Obrador recalled that it was quoted at more than 100 dollars a barrel. He added that with this excess income the federal government could "maintain a subsidy of the order of 350,000 million pesos (close to 18,000 million dollars), and this is what has allowed us to control inflation, because if the price of gasoline we are going up”.

In the same way, the head of state stated that the basket will be maintained and they will work to add food that can be obtained at a better price, through measures such as eliminating import tariffs.