Inflation reaches highest level in 17 years

Last December, inflation in Mexico reached its highest level in 17 years , driven by the increase in the price of goods and services such as tomatoes, air transport, low octane gasoline, and domestic LP gas according to the latest data disclosed by the National Institute of Statics and Geography ( Inegi ).

The National Consumer Price Index registered a monthly growth of 0.59% last month while the annual inflation reached 6.77% , the highest since May 2001 when it stood at 6.95%, and the highest for a year-end closing since 2000 when it stood at 8.66% .

Among the goods and services that presented a price increase last month are eggs, with a monthly increase of 5.76%; all-inclusive tourist services, 7.43%; zucchini, 26.61%; restaurants, 0.59%; and public transportation, 0.84%.

Thus, the price index of the basket of goods , compressing those goods and services of higher consumption by low-income families, had an increase of 0.66% last month, obtaining an annual average of 9.61% , the highest figure in 17 years, since March 2000 , when it stood at 9.74% .

The underlying price index, which does not include the most volatile goods and services, reported a monthly increase of 0.42% and an annual rate of 4.87%.

Within the underlying index, the prices of goods increased 0.32% and services 0.50% on a monthly basis.

Within the non-core price index, prices of agricultural products rose 1.81% while those of energy and government-authorized rates rose 0.65%.

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