Mexico's Inflation Drops to 4.55% in November
In November, Mexico's overall inflation decreased to 4.55% year-over-year, following the increase observed in October. The core inflation rate ended the penultimate month of the year at 3.58%, while non-core inflation stood at 7.60%, according to an announcement from Inegi.
Among the products that saw the biggest price increases were: papaya at 22.53%, onions at 22.32%, electricity rising by 22.27%, nopales at 18.58%, and professional services with an increase of 8.91%. In contrast, those that experienced the largest declines were lemons at -23.46%, zucchini at -11.07%, carrots at -10.93%, avocados at -7.30%, and potatoes as well as other tubers at -5.52%.
The overall inflation rate was below the 4.6% projected by Banamex. They noted that “the monthly variation was largely due to the seasonal increase in electricity rates, as well as in housing services, airline fares, and food, which were partially offset by the decrease in prices of non-food products due to the Buen Fin sales.” On a monthly basis, overall inflation increased by 0.44%, marking the lowest figure for a similar month since 2020 (0.08%), as highlighted by Banco Base. In terms of monthly variation, the core inflation was 0.05% and non-core inflation was 1.73%. In the analysis of non-core inflation, which is considered more representative for assessing price behavior, education and other services showed the most significant increases at 5.79% and 5.73%, respectively. Within the non-core index, fruits and vegetables saw the highest surge, reaching an increase of 16.81%, followed by agricultural products at 10.74%.
The recent slowdown in inflation is a encouraging sign for consumers, but constant pressures still persist in certain sectors of the economy. It is vital to monitor price developments across different categories to anticipate how this could affect consumption and saving decisions for families in Mexico. With proper financial management strategies, citizens could mitigate the impact of inflation on their daily budget.
