In the case of subjacent inflation -considered a better parameter to measure the trajectory of prices because it eliminates high volatility products- an increase of 0.18% was registered at a fortnightly rate, and 7.45% at an annual rate. The result was also less than the 7.49% increase expected by the market.
Within core inflation, merchandise prices rose 0.17% and services 0.19%.
On the other hand, within the non-core index, at a fortnightly rate, the prices of agricultural products fell 0.52% and those of energy and tariffs authorized by the government decreased 2.99%. This reduction was mainly due to adjustments in electricity rates for the hot season in 11 cities in the country.
Headline inflation is still above the Bank of Mexico’s target of 3% +/- one percentage point. The central bank recently paused its interest rate hikes, although it acknowledged that the outlook remains “complicated and uncertain.”
