Inflation in Mexico accelerates to 6.2%; gas, electricity and tourism prices rise

In the first half of October, the national inflation rate stood at 6.2% in its interannual comparison, following the global trend of increases in the price level for consumers. The level in Mexico added another month outside the target set by the Bank of Mexico (3% +/- one percentage point).

During the first fortnight of October, the National Consumer Price Index (INPC) showed an increase of 0.54% compared to the immediate previous fortnight, according to figures from Inegi (National Institute of Statistics and Geography).

The prices of energy, transport and some manufactures continue to grow in a globalized and accelerated manner. Additionally, due to season and production problems, some farmers were also affected during this period.

The gas does not give truce

Despite the controversial price control program for domestic LP gas promoted by the president, Andrés Manuel López Obrador, the price level continues to grow. In the last fifteen days its price increased 4.42 percent.

Winter has already started

Electricity became significantly more expensive during this period due to the onset of winter, which means the suspension of electricity subsidies in different parts of the country that face high temperatures during the summer.

Although the increase is seasonal, it has a high impact on the calculation of the INPC. In the first half of October, electricity became more expensive by 18.80 percent.

The cities that receive this subsidy are: Mérida, Monterrey, Acapulco, Torreón, Veracruz, Villahermosa, Tampico, Monclova, Chetumal, Iguala, Tepic, San Andrés Tuxtla, Campeche, Tehuantepec, Cd. Acuña, Cancún, Coatzacoalcos and Tuxtla Gutiérrez.

Transport becomes more expensive

Air transport and tourist services contracted in packages also showed a significant increase in their price levels, of 11.38 and 4.92% respectively.

The relaxation of sanitary measures, the advance of vaccination and the beginning of the season at the end of the year could explain an increase in the demand for these services related to travel, leisure, entertainment or recreation.

For its part, the price of cars also increased during the first fortnight of October, with 0.68% more than the previous fortnight.