The Inegi reported this morning that the underlying price index, that is, the one that eliminates the most volatile prices in the economy and considers only the most stable products and services, rose 6.59%, to reach its highest level since June 2001.
Core inflation is another way of looking at inflation because it excludes the most volatile goods and services.that is, it does not take into account the price of some energy sources and agricultural foods because the behavior of these goods is due to seasonal factors.
On his Twitter account, Banxico’s deputy governor warned that pressure on input prices persists and that inflation will be more persistent than anticipated.
1/5 The immediate question is if we could think that core inflation peaked now in February and could already start to slow down. What I see is no.
— Jonathan Heath (@JonathanHeath54)
March 9, 2022
Headline inflation in Mexico accelerated in February above expectations, reinforcing expectations that the central bank will continue to raise its key rate following the next steps of the Federal Reserve (Fed).
“The war in Ukraine will put further upward pressure on prices in Mexico,” said Nikhil Sanghani, emerging markets economist at Capital Economics. “In this context, there is a growing possibility that Banco de México will increase the pace of adjustment at its meeting later this month.”