Inflation stood at 6.24% in October; its highest level since late 2017

Inflation to consumers continues not to yield. In October it registered three consecutive months accelerating, with which it reached the highest level since late 2017, according to the information released by the National Institute of Statistics and Geography (Inegi).

The National consumer price index (INPC) advanced 0.84% ​​monthly in October, while the annual rate stood at 6.24%, the highest level recorded since the end of 2017 when the rise in consumer prices averaged 6.77 percent.

With the October result, they add up to eight months in which inflation is above the Banco de México (Banxico) target of 3% +/- 1 percentage point and, it is expected that by the end of the year, given the persistence of pressures inflationary, inflation continues outside the institution’s objective.

Analysts, according to a survey carried out by Reuters, expected a price hike of 6.14%, a figure that was exceeded. Given the outlook, Banxico is expected to make a new hike in its reference rate at its next monetary policy meeting.

Widespread pressure

Within the report it was observed that the pressures for inflation they occurred in both the underlying and non-underlying index.

In the case of the first, which eliminates from its calculation the goods and services with more volatile prices, inflation was 5.19 percent.

Of its components, merchandise showed a price increase of 6.58% in annual comparison, while services increased by 3.64 percent.

Non-core inflation, for its part, presented an annual rate of 9.47 percent. Within it, agricultural products increased their price by 9.02%, while energy prices and tariffs authorized by the government by 9.82 percent.

Electricity and LP Gas hit the pockets

Compared to September this year, the electricity and LP gas it was the two generics, with rising prices, that had the greatest impact on inflation.

In the case of electricity, from September to October its price increased 18.80% due to the end of the subsidy that is granted to some states in the summer.

LP gas, meanwhile, became 8.20% more expensive per month despite the price control implemented by the federal government.

Other increases that impacted general inflation were those of onion, with 19.33%; the egg, with 4.51%, and the green tomato, with 25.55 percent.

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