Inflation in Mexico shoots up 8.16% in the first half of July

Core inflation also exceeded this expectation, with annual growth of 7.56%, the highest since December 2000.

Non-core inflation, on the other hand, grew at a rate of 9.96% at an annual rate, with an annual increase of 16.76% in agricultural products and 4.78% in energy products.

Prices in the country increased 0.43% during the first fortnight of July, compared to the previous fortnight. Which is above the 0.39% perspective of the Reuters agency survey.

Core inflation grew 0.34% compared to the last half of June, slightly more than the 0.31% projection. With this, it doubled the average of the last 10 years of 0.17%.

It is expected that with this growth in inflation, the Bank of Mexico will be pressured to make a further increase in interest rates, in its next monetary policy decision.

Food prices continue to drive inflation

Within the underlying component, the prices of food, beverages and tobacco grew 11.95%, at an annual rate, in the first 15 days of the month. While, within the non-core component, agricultural products advanced at an annual rate of 16.76%.

The most significant increases were observed in eggs, potatoes, luncheonettes, inns and taquerias, electricity, tourist package services, restaurants, air transport, packaged soft drinks, onions and oranges.

Only the egg increased 6.28% in its fortnightly variation, while the prices in the inns, taquerias and torterías grew 6.82%.

And within the products that fell in price are chicken, avocado and grapes, with decreases of 1.37%, 3.64% and 11.21%, compared to the last fortnight of June.