In October, according to data released by the National Institute of Statistics and Geography (Inegi), producer prices rebounded, this as a consequence of the so-called “bottlenecks” that have been generated in global value chains. in recent months, as well as the increase in some raw materials, according to analysts.
The National Producer Price Index (INPP), including oil, had a monthly advance of 1.49%, while at the annual rate it accelerated from 7.07% in September to 8.59% in October.
With this, the INPP reported the highest rate on record for any month since June 2018, when prices increased by 9.22% annually.
“Producer prices increased again, reflecting bottlenecks in global value chains and increases in the prices of raw materials, such as oil, copper and wheat, among others,” said Alejandro Saldaña, Deputy Director of Economic Analysis at Ve for More (Bx +).
In this sense, James Salazar, deputy director of Economic Analysis at CIBanco, pointed out that this has been the trend in recent months – worldwide – given the difficulty that producers have had in obtaining inputs or intermediate goods, which are incorporated into their production processes.
In this sense, Inegi reported that the Index of Goods and Services for Intermediate Use, including oil, showed a monthly rise of 2.31%, while in annual comparison the increase was 12.63 percent.
Meanwhile, the Index of Goods and End-use Services, including oil, presented a monthly growth of 1.17%, while at the annual rate it increased 7.05 percent.
Pressure for industrial sector
By sector of economic activity, it was observed that the greatest pressure occurred in secondary activities, that is, the industrial sector, where producers faced a price hike of 11.52 percent.
Within this area, it was mining that registered the highest inflation, with an increase of 46.08%, followed by construction, with 15.24 percent. In the case of manufacturing industries, the increase in prices was 8.04 percent.
In the case of primary activities, which include agriculture, animal husbandry and exploitation, forestry, fishing and hunting, the increase in producer prices was 10.58 percent.
In the case of the tertiary sector, which refers to the services provided in the country, registered inflation was much lower compared to other economic activities.
Producers engaged in tertiary activities faced a price increase of 2.87% compared to October last year.
The service where the greatest increase was observed was temporary accommodation and food and beverage preparation, with an inflation of 5.06%, while health and social assistance services had an increase of 2.16 percent.
Reference-www.eleconomista.com.mx