Inflation registers the lowest level since December 2016

In January 2019, the National Consumer Price Index (INPC) registered a monthly increase of 0.09 percent, bringing the annual inflation rate to 4.37 percent, below what analysts expected. It is also the lowest since December 2016, when it stood at 3.36 percent.

Inflation of 4.37 percent observed in January was lower than the 4.5 percent expected by analysts
Inflation of 4.37 percent observed in January was lower than the 4.5 percent expected by analysts

The National Institute of Statistics and Geography (INEGI) reported that, in the same month of 2018, the inflation data was 0.53 percent monthly, as well as 5.55 percent in its annual comparison.

Inflation in the first month of the year was the result of an increase in agricultural products such as onions and serrano peppers, which was partially offset by drops in gasoline, air transport, tour packages, and LP domestic gas.

Thus, inflation of 4.37 percent observed in January was lower than the 4.5 percent expected by analysts, as well as the figure recorded last December, when the indicator was at 4.83 percent.

Similarly, the agency reported that the inflation data observed in January this year is the lowest since December 2016, when it stood at 3.36 percent.

The products with higher prices upwards in January were serrano peppers (67.23%), onion (29.94%), other fresh peppers (16.84), bananas (10.20%), water supply rights (2.22%), foreign bus ( 1.72%) and automobiles (1.44%).

While the products with higher prices to the drop were green tomato (35.20%), air transport (32.26%), tomato (14.87%), package tourism services (11.64%), LP domestic gas (2.52), sugar (2.51) %) and low octane gasoline (2.40%), among others.

The entities with variation above the national inflation were Guerrero, Querétaro, San Luis Potosí, Durango and Aguascalientes; while those of variation below the national one were Baja California, Chihuahua, Chiapas, Tamaulipas, and Morelos.

In turn, Underlying inflation had a growth of 0.20 percent monthly in January of this year and an annual variation of 3.60 percent, slightly below the previous figure, when it stood at 3.68 percent.

Within the Underlying Price Index, the prices of goods rose 0.31 percent and those of services 0.08 percent monthly.

Similarly, Non-Underlying inflation was reduced 0.25 percent monthly, reaching an annual rate of 6.81 percent, a lower figure when compared to December 2018, when it closed at 8.40 percent.

Within the Non-Underlying Price Index, the prices of agricultural products rose 0.35 percent, while the prices of energy and tariffs authorized by the government decreased 0.68 percent monthly.

On the other hand, the INEGI informed that during January of this year the National Producer Price Index (INPP) Total, excluding oil, presented a reduction of 0.53 percent at a monthly rate, reaching an annual rate of 4.97 percent.

In the same month of 2018, the institute detailed, the figures were 0.84 percent monthly and 3.38 percent annual.

By groups of economic activities, he added, the prices of the Primary Activities rose 0.22 percent, while those of the Secondary Activities fell 0.71 percent and those of the Tertiary ones dropped 0.34 percent at the monthly rate.

The Index of Goods and Services for Intermediate Use, excluding oil, showed a monthly fall of 0.58 percent, placing its annual rate at 5.42 percent.

For its part, the Index of Final Goods and Services, excluding oil, registered a monthly decrease of 0.51 percent and an annual rate of 4.77 percent, the institute said.

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