Annual inflation in Mexico amounts to 7.05% and records its highest rise in the last 20 years

Annual inflation in Mexico rose to 7.05% during the first half of November and became the highest rate registered in the Latin American country during the last 20 years, the president of the National Institute of Statistics and Geography (Inegi) highlighted this Wednesday. , Julio Santaella.

The owner of the INEGI precise that the current annual indicator of the National Consumer Price Index (INPC) is the highest registered since April 2001. In addition, he pointed out that annual core inflation grew to 5.53% and has become the largest calculated since April 2009.

These data were published by the Inegi in the INPC fortnightly report, where it is detailed that annual inflation grew 0.69% compared to the last 15 days of October, when the indicator was 6.36%. The agency recalled that during the same period of 2020, the variations of the INPC were 0.04% biweekly and 3.43% annually.

Inegi explained that, in the last 15 days, the underlying price index showed an increase of 0.15% every two weeks to reach 5.53% per year. It also explains that within this line, merchandise increased 0.07% and services 0.25%.

For the non-core price indicator, there was an increase of 2.29% biweekly and 11.68% annually. In this case, agricultural products rose 2.17%; while those related to energy and tariffs authorized by the government grew 2.38%.

These increases, according to Inegi, are largely due to the conclusion of the subsidy to the electricity rate program that was applied in 11 cities of the country during the summer.

“We need the electrical reform so that prices do not increase”

For his part, the president of Mexico, Andrés Manuel López Obrador, considered that inflation growth is part of the “post-pandemic crisis” which is manifested “in all countries”, and gave as an example the indicators shown by the US and Brazil today.

López Obrador commented, during his morning press conference, that the rise in inflation on a global scale is linked to the increase in the prices of raw materials, food, steel and the costs of maritime transport.

“In general, Mexico’s inflation is higher than that of the United States, in this case it is the same, they also bring an inflation of more than 6%, Brazil brings an inflation of 11%, It is a phenomenon that is affecting, I hope this is resolved soon“, said.

The Mexican minister added that in the case of his country, they are “managing to stabilize” the rates, but they need to approve the electrical reform so that prices do not increase further.