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According to information released by the National Institute of Statistics and Geography (Inegi), inflation has registered a deceleration after two consecutive fortnight of progress over the first 15 days of October.
The Inegi report revealed that during the first half of October, the national consumer price index (NCPI) rose by 0.40% compared to the previous two weeks, which was 4.94% in annual rate.
Despite the slowdown, inflation remains above the Bank of Mexico (Banxico) target of 3% +/- 1 percentage point. With October data, he spun 43 consecutive weeks over the central bank target.
According to analysts, the deceleration recorded during the first half of October is explained by the fact that the reading in September was affected by the earthquakes that occurred in 2017, these having affected the base comparison.
In the Inegi report, it can be seen that the increase in inflation was due, to a greater extent, to the increases reported by the energy sector, particularly increases in electricity and electricity. Gasoline with low octane number.
"The normalization of electricity tariffs in some northern cities, after the removal of subsidies during the hot season, as well as rising gasoline prices have led to higher prices in general," said Joan Domene, Analyst at Invex.
In this sense, electricity rates recorded the largest change every two weeks, with the most significant impact on prices, by 17.82%, while at the annual rate, their costs increased by 1, 90%. On the other hand, low octane gasoline increased by 0.73% every two weeks and by 22.54% per year.
Banorte analysts pointed out that the end-of-summer subsidy to electricity rates is a typical seasonal effect. An increase is therefore expected for the first half of November.
Underlying, down
On the other hand, core inflation rose by 0.17% every two weeks, up from 3.74% year-on-year, which is slightly below the record of the last two weeks of September, which was 3.78%. %. This slight deceleration is also explained by the effects of last year's earthquakes in the service sector, said Alejandro Saldaña, an analyst at Ve por Más (Bx +).
"However, the other component of the underlying index, the commodity, recorded a marginal rebound for the second fortnight in a row.The above is due to an increase in the price of non-food products, highlighting the generic car The latter probably reflected the recent volatility of exchange rates and the increase in the production chain in the face of rising raw material costs, "he said.
In this category, products registered an annual increase of 4.00% due to the 4.86% increase in the food, beverages and tobacco component, while non-food products registered a rate of 3, 27%.
In the services part, they recorded an annual increase of 3.48%, as a result of the 4.69% increase in tuition fees, 4.29% of other services, as well as housing, which rose by 2.61%. percent.
No underlying
For non-core inflation, the gap was 1.10% every two weeks, or 8.59% per annum, which is lower than in the last two weeks of September.
"The annual growth rate of the non-core index has dropped because the moderation of the energy component has offset the upward changes in fruits and vegetables," he said.
In this category, agricultural prices increased by 2.26% per year due to increases of 2.25% of livestock and 2.08% of fruits and vegetables, while the energy component and tariffs authorized by the government. increased by 12.89%, due to the 17.55% increase in energy costs and 3.42% in authorized rates.
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