The inflation registered, in the first half of December, a slowdown in its annual comparison with respect to the last immediate fortnight; however, it continued above 7%, according to the latest data from the National Institute of Statistics and Geography (Inegi).
The National consumer price index (INPC) showed, in the first 15 days of the last month of the year, an advance of 0.19% compared to the previous fortnight, while the annual rate was 7.45%, lower than the figure of 7.70% of the last fortnight of November .
The data was below the projections of analysts, who, according to a Reuters poll, expected inflation to accelerate to 7.73% annually, thus becoming the highest record since the second half of January 2001, when it stood at 7.86 percent.
Inflation has been above the 7% ceiling for three weeks, and for 19 consecutive weeks above the Banco de México (Banxico) target of 3% +/- 1 percentage point and it is expected to continue like this even in 2022.
Inflationary pressures have put various nations in check and generated the discussion of whether or not these impacts continue to be transitory. The Covid-19 pandemic, still in force, has generated supply shocks that have increased the prices of certain products and services.
In this situation, Banxico has had to act on several occasions by raising the interest rate. By 2021, it will close at 5.50 percent.
Again, inflation pressures were general; however, a greater weight was observed in underlying inflation, which eliminates goods and services with more volatile prices from its calculation.
This index showed an annual variation of 5.87% in the first half of December. Inside this, merchandise showed a price increase of 7.26% and services of 4.32 percent.
In the case of non-core inflation, it was 12.34% per year. This was the result of price increases of 16.30% per year for agricultural goods, and 9.33% for agricultural goods. energetic and government authorized rates.
Reference-www.eleconomista.com.mx