Prices to producers in Mexico continued to moderate their rise during February, according to information released by the National Institute of Statistics and Geography (Inegi).
The National Producer Price Index (INPP), including oil, showed a monthly decrease of 0.03%, which led to a 3.36 percent increase in producer prices in annual comparison.
Although the above means a continuous increase in producer prices, the February data meant its tenth consecutive slowdown, in addition to being the lowest level since June 2020, when it stood at 2.68 percent.
“It slowed down from 4.80 to 3.36% per year, its lowest variation since June 2020, in line with a lower price of raw materials compared to last year (beginning of the war in Ukraine), as well as due to lower logistics costs”, highlighted Alejandro Saldaña, chief economist at Ve por Más (Bx+).
Last year, after Russia’s invasion of Ukraine at the end of February, the prices of some raw materials such as corn, wheat and barley skyrocketed, as well as the price of oil, which led to increases in prices at producers and, in turn, consumers.
The Intermediate Use Goods and Services Index, including oil, was also reported, decreased 0.37% monthly in February, while at the annual rate it increased 1.09 percent.
Meanwhile, in the same period the Final Goods and Services Index, including oil, presented an increase of 0.10% compared to the previous month, as well as a growth of 4.28% compared to February last year.
Agricultural sector, the one with the highest increase
In the breakdown of the Inegi report, it was observed that although the three economic activities had an annual increase in prices, it was the primary sector that presented a greater increase.
In February, the prices of the sector dedicated to agriculture, fishing, livestock and the like, showed a monthly increase of 1.52%, while at the annual rate the increase was 10.53 percent.
It was followed by tertiary activities, that is, the service sector. In February, said sector showed monthly inflation for producers of 0.69%, while at an annual rate it was 5.90 percent.
Within these activities, temporary accommodation and food and beverage preparation services were the ones that showed the highest inflation, with an annual rate of 11.43%, followed by transportation, mail and storage services, with an increase of 7.95 percent. hundred.
In contrast, the report specifies that the information service in the mass media was the only one that showed a decrease of 1.27 percent in February.
In the case of the secondary sector, where the industries are located, a monthly price decrease of 0.53% was observed, while in the annual comparison inflation was 1.51% in February, according to the report.
Within this industry, mining was the only one that showed a decrease in prices with a negative rate of 22.21%, while prices in the construction industry were the ones that became more expensive, with annual inflation of 8.23 per cent. hundred.
