Inflation continues to decline, in the first half of September it stood at 4.66%

The market expected headline inflation to be 4.7%, according to the Citibanamex survey.

Within the underlying index, at an annual rate, other services registered the largest increase with 6.03%, followed by education (tuition fees), which ended the first half of the month at 5.78% and services at 5.15%.

The slowdown in inflation is encouraging the view that the Bank of Mexico (Banxico) will continue to cut its reference interest rate. The central bank’s monetary policy announcement will be made this Thursday.

The non-core index ended the first half of the month at 6.73%.

At a biweekly rate, the INPC had an increase of 0.9%, the underlying index 0.21% and the non-underlying index had a decrease of 0.31%.

Within non-core inflation, energy led the increases with 7.92%, fruits and vegetables registered 7.15% and energy and government-authorized rates 6.67%.

Products on the rise and fall

The products with the greatest biweekly variation were:

Lemon: 12.76%
Secondary: 5.51%
Primary: 5.48%
Other fruits: 3.82%
Softeners and cleaners: 1.60%

While the products with the largest declines were:

Professional services: -14.79%
Orange: -13.63%
Tomato: -9.49%
Zucchini: -7-97%
Avocado: -5.98%