Inflation stood at 8.53% annually during the first half of October

The inflation gave a slight respite in the first half of October, according to data released by the National Institute of Statistics and Geography (inegi) that showed that the data was below the market expectation.

In the first half of the month, the National consumer price index (INPC) reported a fortnightly advance of 0.44%, while the annual rate reached a level of 8.53 percent.

Although inflation continues to be above the target of the Bank of Mexico (Banxico) of 3% +/-1 percentage point, the data for the first 15 days of the month surprised the market, which expected a higher price increase.

A Reuters poll showed that market specialists expected inflation of 8.62 percent.

In addition to being below the market projection, inflation in the first half of October showed a slowdown from 8.64% in the last half of September.

Food continues to press pockets

Within the report it was observed that, as has happened in recent months, it is the products related to food that have put pressure on the pockets of Mexicans.

from the side of the Underlying inflation, which eliminates from its calculation the goods and services with the most volatile prices, the figure was 8.39% per year. Within this, food, beverages and tobacco were the products that exerted the most pressure, with an increase in their price of 13.87 percent.

In the case of non-core inflationthe average price increase, at the national level, was 8.95 percent.

As with Core inflation, the pressure here was related to food, where livestock products exerted pressure by showing an increase of 15.09 percent.

End of warm season paste

The fortnightly inflation reported in the first half of October was mainly explained by the increase in electricity prices in various states. According to the data, electricity showed an annual increase of 17.46% due to the end of the warm season in different regions of the country.

Meanwhile, the tomato showed an increase of 9.31% and the lunch shops, inns and taquerias of 0.61 percent.

ana.martinez@eleconomista.mx