“During the first three months of 2023, service inflation stood at 0.55% per month, rising from 0.39% in the same period of 2022 and reaching its highest level since 2013,” indicated an analysis by Banco Base. Which is no less if one considers that tertiary activities represent more than 64% of the Gross Domestic Product in the country.
While other products such as LP gas, televisions, computers, some furniture and agricultural products fell in price, services maintain an upward trend that will keep Banco de México busy.
This phenomenon does not only exist in Mexico. In the United States, the Federal Reserve closely follows the so-called ‘supercore’ – an index that tracks the price of a series of products even narrower than the underlying call and which is largely made up of services. In February, the index rose 0.2% and was 4% higher than in 2022, at the same time that headline inflation continued to slow.
Why do the prices of services keep increasing?
“In the case of Mexico, the services sector was the most affected during the coronavirus crisis and was the last to recover. In fact, in terms of tourism, it has not fully recovered yet. Now that there is complete normality in mobility, that is where the highest inflation is reflected”, comments the director of economic analysis at Banco Base, Gabriela Siller, for Expansión.
To give an example, in March, the air transport service grew 25.99% in a single month, tourist services rose 8.59%, sports clubs raised their fees by 1.8% per month and the costs of hospital care, medical care also grew. during deliveries and laundry services, among others.
In the case of tourist services, it must be taken into account that prices are dynamic due to supplier availability, occupancy factors, seasonality, types of services, anticipation of purchase, among others, said Despegar, a company specialized in the sale online tour packages. And he adds that more than 50% of Mexicans continue to visit a website or mobile application related to travel, according to Comscore data, which suggests that the demand for these services remains high.
The only services that maintain a downward trend, even since last year, are pay television, internet and telephony packages in general . Although companies like Izzi and Sky have already announced upcoming adjustments to their rates.
