The National Institute of Statistics and Geography (Inegi) announced today the year-end results in terms of the economy, highlighting that inflation reached 7.82% per year closing December with the record for the highest level of inflation in 22 years.
The Inegi also highlighted the increase in the consumer price index (CPI) of 0.38% compared to November of last year, when a drop of 7.8% in annual inflation was reported.
To compare numbers we have that in December 2021, annual inflation was at 7.36%, the highest closing of the year up to that time, while in terms of monthly inflation they were at 0.36%.
Blow to the domestic economy
The underlying price index, considered a better parameter to measure the general scarcity because it eliminates items with high volatility in their prices, rose 0.65% monthly and 8.35% annually, detailed the Inegi.
While the non-core item fell by 0.40% at the monthly rate, although it increased by 6.27% year-on-year.
Within the underlying goods and services subgroup, merchandise increased 0.74% in the month and 11.09% in the year.
While services advanced 0.53% monthly and 5.19% annually. In non-core, agricultural prices rose 0.50% compared to the immediately preceding period and 9.52% compared to the same period last year.
Energy and tariffs authorized by the Government decreased by 1.15% in the month, but they advanced 3.66% in the year.
Finally, the price index of the minimum consumption basket, made up of 176 products and services, presented an increase of 0.37% monthly and 8.54% year-on-year.
The Inegi also announced that in December the producer price index, including oil, rose by 4.88% at the annual rate, below 10.32% in December 2021.
Consumer prices closed in 2021 with a rise of 7.36%, a level not seen in 2 decades, given the rise in basic inputs such as agriculture or energy.
The data for 2022 is more than double the 3% annual goal established by the Bank of Mexico (Banxico), which has raised 13 times the interest rate to a record 10.5%.
The president, Andrés Manuel López Obrador, has criticized the increase in rates and has boasted of “unorthodox” measures that have prevented, according to his calculations, inflation from exceeding 10% per year.
The president first promoted a “Package against inflation and high prices” (Pacic) last May, which included more than 300 billion pesos (about 15 billion dollars) in fuel tax subsidies. And then he launched a “Opening agreement against inflation and high prices” in October for businessmen to commit not to raise basic products.
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