Inflation in Mexico is 0.74% in July and accumulates 8.15% in 12 months

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Inflation last July in Mexico was 0.74%, bringing the year-on-year record to 8.15% due to increases in the prices of food and beverages, the National Institute of Statistics (INEGI) reported on Tuesday.

That figure was higher than the 0.59% registered in the same month of 2021, when the INEGI reported an annual accumulated figure of 5.81%.

Mexico registers the highest inflationary levels in two decades, well above the objective of the Bank of Mexico (Banxico, central), which is 3% per year +/- one percentage point.

Given this scenario, Banxico raised its interest rate on June 23 by 75 basis points, to 7.75%, and anticipated that it could continue to increase it if necessary to combat price increases.

The Mexican economy, hard hit by the covid-19 pandemic, collapsed 8.4% in 2020. In 2021 it advanced 5% and for this year the analysts who month by month survey the central bank expect an expansion of 1.8% .

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