Economic activity grew 6.8% in August

Economic activity increased 6.8% in August with respect to the same month of last year, as reported this Friday by the National Institute of Statistics and Geography (Inegi). In detailing the Timely Indicator of Economic Activity (IOAE), Inegi specified that in real terms, there was a 0.2% decrease compared to July 2021, when the IOAE estimated an increase of 9.9% compared to last June.

When evaluating the major economic activities, secondary activities had an annual advance of 4.1% and tertiary activities of 8.3%. However, in monthly terms, secondary activities registered a monthly decrease of 0.5%, while for the tertiary sector the estimated variation was 0%. The IOAE estimates in advance the performance of the economy before the publication of the general index Global Indicator of Economic Activity (IGAE), a monthly GDP benchmark.

Regarding the IGAE, Inegi estimated that by August 2021 it will reach a level of 110.6; for secondary activities, the index is 98.5 while for the tertiary sector it is 117.0%. On September 13, Inegi announced that inflation has already accumulated six months above the Bank of Mexico's range since the annual inflation rate reached 5.59%.

The National Institute of Statistics and Geography stated that the National Consumer Price Index (NCPI) advanced 0.19% in August with respect to the previous month, accumulating inter-annual inflation of 5.59%. Although the figure is outside the 3% target range set by the Bank of Mexico, the inter-annual variation has decelerated compared to July, when inflation stood at 5.81%.

In August of last year, the inter-monthly variation was 0.39%, while the inter-annual variation stood at 4.05%. Meanwhile, the underlying price index, which excludes some products or services due to their high volatility, presented a monthly increase of 0.43% and 4.78% year-over-year. At the same time, non-core inflation fell 0.52% between July and August and rose 8.14% year-over-year.

Within the core price index, merchandise prices rose by 0.70% and services prices rose by 0.12% in the monthly rate. During August, the product that increased the most in price was serrano chili, 46.86%; followed by onion with 14.95%, and avocado, 12.06%. In contrast, the prices that decreased the most were air transportation (18.21%); LP gas (14.46%), and chayote (11.63%).