Inflation in Mexico closes 2020 at its lowest level in seven months

11/01/2021

At the end of 2020, the year-on-year inflation rate in Mexico was 3.15%, its lowest level in seven months and in line with the target set by the Bank of Mexico (3%+/- one percentage point).

The inflationary level presented a relatively stable trend during the year, at certain times pressured by increases in the agricultural or energy sectors. Even with the pressures exerted by the Covid-19 pandemic, only in three periods (August, September, and October) did inflation shoot up to levels outside the target.

In its immediate analysis, the National Consumer Price Index (NCPI) during December registered an increase of 0.38% with respect to November, according to figures from the National Institute of Statistics and Geography.

Within the NCPI, the underlying component exerted the most pressure with a monthly increase of 0.55 percent. Food preparation and sales services, as well as some non-food merchandise, registered significant increases in their price level during the last month of the year.

The non-underlying component registered a 0.13 percent drop in its price level, driven mainly by decreases in the price of fruits and vegetables.

In the last month of the year, the most popular commodities were: onion, papaya, nopales, chile serrano, tomato, lemon, zucchini, other dried chilies, tomato, green, and avocado.

Magna gasoline, LPG, beef, eggs, and chicken became significantly more expensive on a national scale. While the most significant price increases in the last month of 2020 occurred in package tourism services, they were 6.45% more expensive than the previous month.