Mexican inflation reached 8.76 percent in September, the highest rate since 2000

The increase is explained by a 0.41 percent increase in the CPI over the previous 15 days.

Mexico’s general inflation rate rose in the first two weeks of September to 8.76 percent annually, the highest rate for the same period since 2000, the National Institute of Statistics and Geography (Inegi) reported Thursday.

The increase is explained by a 0.41 percent increase in the Consumer Price Index (CPI) over the previous 15 days, the autonomous agency detailed in its report.

The annual figure for this first fortnight of September, within market expectations, also represents an increase compared to August’s, when inflation stood at 8.70 percent inter-annual, its highest level since 2000.

Inegi recalled that in the same fortnight of 2021, a year ago, biweekly inflation was 0.42 percent and the annual rate stood at 5.87 percent.

The underlying price index, considered a better parameter to measure general inflation because it eliminates items with high price volatility, increased 0.44 percent biweekly and 8.27 percent annually, Inegi detailed in its report.

Meanwhile, the non-core item rose 0.32 percent at a biweekly rate and 10.22 percent year-on-year.

Within the subgroup of underlying goods and services, merchandise increased 0.5 percent in the fortnight and 10.75 percent annual rate, while services advanced 0.36 percent in the fortnight and 5.43 percent annual rate.

In non-core items, agriculture and livestock increased 0.86 percent in the immediately preceding period and 15.23 percent in the same period last year.

In contrast, energy and government-authorized tariffs fell 0.14 percent in the fortnight, although they rose 6.20 percent annually.

Finally, the minimum consumption basket price index, made up of 176 products and services, rose 0.52 percent in the fortnight and 9.70 percent at the annual rate.

Consumer prices closed in 2021 with an increase of 7.36 percent, a level not seen in 20 years due to the rise in basic inputs such as agricultural products and energy.

Inflation in 2020 closed at 3.15 percent, while in 2019, inflation was 2.83 percent, and in 2018 consumer prices rose 4.83 percent.

The latest inflation data comes a week before the Bank of Mexico’s (Banxico) new monetary decision, which aims to keep price increases at 3 percent annually.

To contain inflation, the central bank raised its interest rate to 8.5 percent on 11 August, the tenth consecutive increase in its target.