INPP, at its highest annual level in five years, 10.36%


The National Producer Price Index (INPP) for March, including oil, reported an annual increase of 10.36%, the highest level since March 2017 when it registered a variation of 10.7 percent. In its monthly comparison, it accelerated 1.96%, revealed the National Institute of Statistics and Geography (Inegi).

By group of economic activities, the primary sector that is dedicated to agriculture, hunting, fishing, and the like, presented an increase in its prices of 15.1% in its annual comparison, while at a monthly rate the increase was 1.9 percent.

Secondary activities, on the other hand, showed an increase of 12.84% per year, and 1.92% per month. Inside, in the annual comparison it was observed that the mining sector had an increase of 43.98 and 12.26% in its monthly comparison; while the construction industry registered a 14.10% annual increase and 1.51% in its monthly comparison.

Meanwhile, the manufacturing industries registered an advance of 9.56% compared to March 2021; and the generation, transmission and distribution of electricity, water and gas of 4.80% per year. In their monthly comparison they registered 1.17 and 0.37%, respectively.

Tertiary activities showed an annual producer inflation of 4.83% in March, and 1.20% in its monthly comparison. Within this sector, the service that showed the highest annual inflation rate was temporary accommodation and food and beverage preparation, with 10.06 and 0.72% monthly.

“If these inflationary pressures from the INPP continue, what would happen is that in a first stage the increases are assumed by the producers, but if the increases continue to be sustained, they will be transferred to the consumer,” said Janneth Quiroz, deputy director of economic analysis at Monex.

The specialist added that as long as there is no general inflationary decrease in raw materials, a significant reduction in the INPP cannot be seen.

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