Inflation in Mexico slowed marginally during May 2022, after three consecutive months with increases, but it was above the consensus, according to data from the National Institute of Statistics and Geography (Inegi).

Inflationary pressures were part of the underlying component that accumulated 18 consecutive months on the rise. The National Consumer Price Index (INPC) stood at 7.65 percent at an annual rate during the fifth month of the year; the result occurs after in April it will be positioned at 7.68 percent in April.

The result was slightly above market forecasts, which estimated a variation of 7.61 percent at the annual rate, according to the median of economic analysts consulted by Bloomberg.

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In this way, inflation adds 15 consecutive months outside the target range set by the Bank of Mexico (3 percent, +/- one percentage point).

The underlying price index, which is the one that excludes products with high price volatility from its accounting, had an annual variation of 7.28 percent, continuing its upward trend that began in December 2020 and recorded its highest variation since December 2020. 2000, when it registered 7.85 percent.

Inside, the prices of services slowed down and stood at 4.74 percent at the annual rate, after eight months with increases.

The rise in the prices of merchandise was 9.53 percent at an annual rate, reaching its highest variation since there is data from the institute, that is, since August 2011.

Of interest: Automotive sector, axis of the Mexican economy

The non-core balance, which accounts for products with high price volatility, such as agricultural products or fuels, slowed for the second consecutive month and stood at 8.77 percent.

In a disaggregated manner, the prices of agricultural products stood at 13.08 percent, while those of energy and tariffs authorized by the Government presented an increase of 5.44 percent, this compared to the same period last year.

At a monthly rate, inflation presented a variation of 0.18 percent during said period, its lowest variation since November 2020.

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Original note