Inflation in Mexico reached 4.1 percent in the first half of September, driven by the price of agricultural products, the National Institute of Statistics and Geography (Inegi) reported on Thursday, Sept. 24.
In the first half of the month, the National Consumer Price Index (INPC) grew 0.16 percent compared to the previous two-week period, according to Inegi.
In the first two weeks of September, the price of onions increased by 23.55 percent, while the price of chicken increased by 1.98 percent, with these two products having a significant impact on the INPC.
Banxico, the Central Bank of Mexico, has set an inflation target of 3 percent, with a tolerance margin of one percentage point above or below that figure.
In a separate report, the Banorte Financial Group said that even though in some areas Banxico’s target has been exceeded, inflation for 2020 will close at 3.7 percent.
“In this sense, and more positively, headline inflation has probably already reached its peak for the year and will gradually fall in the fourth quarter,” the report said.
Since August 2019, Banxico has cut the benchmark interest rate 10 times in a row to reach 4.5 percent, with experts predicting a heavy blow to the Mexican economy in 2020 due to the novel coronavirus.
…Sept. 25, 2020