During the first fortnight of August 2021, inflation slowed to 5.58% per year, from 5.86% in July, supported by the setting of LP Gas prices.

The decrease of 0.02% of the Consumer Price Index INPC, with respect to the previous fortnight, is also lower, it is also lower than the five-year average for the period, of 0.22%; derived from the fall in non-core inflation.

Check here: Mexican economy had a year-on-year growth of 19.5% at the end of 2Q 2021

According to analysts, this contraction is linked to the decrease in LP Gas ordered by the national government in July and made official on August 1, 2021 by the Energy Regulatory Commission.

The effect of this adjustment will be seen only once and the price is expected to remain stable from the second half of August.

However, annual inflation continues 11 fortnights below Banxico's target rate, which is 3%, plus or minus one percentage point, and which, given the acceleration in prices, adjusted its reference rate up from 4.25% to 4.5 %.

Of interest: Demands of industrial space with increasingly high standards

For its part, non-core inflation decreased 0.92% biweekly and stood at 8.08% annually. Within the non-core component, the prices of agricultural products rose 1.18% biweekly, while energy and tariffs authorized by the government fell 2.53%.

Within the core, the prices of merchandise grew 0.47% and that of services 0.06% fortnightly.

In Solili you can consult the Industrial Real Estate Report as of July 2021

Original note