Inflation falls more than expected in the first half of August

In addition, the Core inflation rose 0.10% at biweekly rate and 3.98% at annual ratewhich was also below expectations. Core inflation is considered a better gauge of price behavior in the medium and long term, as it excludes products with more volatile prices and government-authorized tariffs.

Within the underlying index, merchandise prices increased by 0.14% and services prices by 0.07%, at a biweekly rate.

For its part, the non-core price index registered a biweekly variation of -0.46% and an annual variation of 8.80%. And, within this index, the prices of the Agricultural products fell by 1.30% and energy prices and government-authorized rates rose 0.25%.

The decline in biweekly inflation comes after the Bank of Mexico reduced its interest rate by 25 basis points, to leave it at 10.75% on August 8. Recently, the central bank’s deputy governor, Jonathan Heath, expressed confidence that the moment to lower rates more systematically “is just around the corner.”

Products that increased the most in price

Inegi presented the main generic products whose price variations stood out for their impact on general inflation.

Products on the rise

Low octane gasoline: Biweekly variation 0.46%
Electricity: Biweekly variation 1.90%
Egg: Biweekly variation 1.75%
University: Biweekly variation 1.51%
Own home: Biweekly variation 0.10%

Products with falling prices

Chayote: Biweekly variation -45.66%
Air transport: Biweekly variation -14.50%
Tomato: Biweekly variation -4.91%
Domestic LP gas: Biweekly variation -1.95%
Chicken: Biweekly variation -1.28%