Inflation in Mexico registered its highest closing in 21 years with 7.36%

2021 closed like worst year for the pocket of Mexicans after almost two decades, after closing with a 7.36% inflation, the highest price hike not seen since 2001, according to the National Institute of Statistics and Geography (Inegi).

At an annual rate, underlying inflation was 5.94% and 0.80% at a monthly rate, and although it slowed slightly in December in the inter-annual rate, it remained well above the goal of Banco de México (Banxico).

According to the report presented this Friday by Inegi, the National Consumer Price Index (INPC) stood at 7.36%, an increase that was driven by the increase in prices in some agricultural products and air transport.

Mexico ends with the highest inflation in years

Vegetable prices rose. 2021 closed as the worst year for the pocket of Mexicans

Inflation was lower than expected last December, however, it continued above the 7.00% ceiling, reaching the highest level, for a year-end that was not in sight. for 21 years.

The December result showed a slight deceleration compared to the rate of 7.37 registered in November, where prices increased 1.14%. However, the reduction was minimal, as we should remember that since last March, inflation began to be a problem for the Bank of Mexico (Banxico) when it exceeded the goal of 3% +/- 1 percentage point.

Derived from this, prices rose in the agricultural sector up to 15.78 percent, being the fruits and vegetables the ones that are scarce 21.73% and livestock 11.11 percent. Meanwhile, the energy and tariffs authorized by the government presented an increase in their prices of 8.68 percent. Energy, on the one hand, became more expensive 11.50% while rates 2.30 percent.

How is inflation measured in Mexico?

2021 closed as the worst year for the pocket of Mexicans

The price increase is known as inflation, in Mexico, it is measured from the variation of the National consumer price index (INPC) since 1969. This is calculated biweekly and is made up of 283 representative generic items, which are weighted according to their weight in the level of total spending.

As we made known in AmericanPost.News, inflation in Mexico accelerated since last March, exceeding figures not recorded in 20 years, a situation that could be repeated this year according to the inflation expectation for 2022 of the Bank of Mexico.

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