Mexico's Inflation Falls to its Lowest Level Since 2016

Inflation in Mexico during the first half of August registered a decrease of 0.08 percent, and in annual terms was 3.29 percent, the lowest level since 2016, an official source reported Thursday. The National Institute of Statistics and Geography (INEGI) reported that a reduction in agricultural products and in the tariffs authorized by the government, of 1.44 percent and 0.08 percent, respectively, led to this drop.

According to the agency's records, the bimonthly variation of -0.08 percent is the lowest in the history of the National Consumer Price Index (INCP) for that period and the only negative, i.e., only case of deflation.

The inflation data correspond to the first half of August, the last with a reference rate of the Bank of Mexico of 8.25 percent.

The products with the greatest incidence on the rate were airplane travel, university courses and lemons; while it was lowered with tomatoes, cooked foods and packaged soft drinks.

The cities with the highest prices of goods and services were Chiapas, Sonora and Aguascalientes. The cheapest were registered in Guerrero, Hidalgo and Morelos.
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