Prices to producers, with the smallest rise in 20 months

Inflationary pressures for producers in Mexico continued to decrease in November, according to data released by the National Institute of Statistics and Geography (Inegi).

In the penultimate month of the year, the National Producer Price Index (INPP), including oil, presented a monthly decrease of 0.37 percent.

With this, inflation for producers, at the annual rate, was 5.68%, considerably lower than that reported in October, of 7.20% and the lowest since March 2021 when it stood at 6.31 percent.

According to Alejandro Saldaña, deputy director of Economic Analysis at Ve por Más (Bx+), the slowdown in the INPP – which has been going on for seven consecutive months – is due to the dissolution of supply shocks, which were generated as a result of the pandemic. of Covid-19 and continued throughout this year with Russia’s invasion of Ukraine.

The relationship between producer inflation and consumer inflation is not so direct at times, but it is good news that the producer is experiencing less pressure in some sectors,” said James Salazar, deputy director of Economic Analysis at CIBanco.

He added that in the case of producers, the factors that increase prices are, for example, the exchange rate, interest rates, storage costs, logistics, as well as the issue of supply and demand.

The Inegi report showed that, in the case of the Intermediate Use Goods and Services index, including oil, a monthly decrease of 0.64% was observed, while the annual rate increased by 4.88 percent.

For its part, the Merchandise and Final Services index, including oil, also observed a monthly decrease of 0.26%, while the annual rate increased by 6.01% in November.

Higher inflation in the primary sector

By category of economic activities, it was observed in November that the highest inflation was observed in the primary sector, where livestock, agriculture, fishing, hunting and the like are located.

In the penultimate month of the year, these activities showed an increase of 0.22% in a monthly comparison, while compared to November 2021, the increase in prices was 11.55 percent.

Secondary activities, for their part, showed a monthly decrease of 0.83% and annual inflation rate was 5.25 percent.

Within this sector, it was the mining industry that showed a reduction in its prices to producers of 5.46% per year, while construction showed an increase of 9.48% in November.

Meanwhile, the industry of generation, transmission and distribution of energy, water and gas presented increases of 5.92% and manufacturing industries had inflation of 5.69 percent.

Regarding tertiary activities, where industries are included, a monthly increase of 0.54% was observed in November, while in annual comparison they became more expensive by 5.55 percent.

The service that showed the highest inflation was temporary accommodation and food and beverage preparation, with 12.07%, followed by transportation, mail and storage, with 7.52 percent.

In contrast, the service that refers to information in the mass media observed a decrease of 0.91% compared to November last year.

ana.martinez@eleconomista.mx