Inflation up to 4.65% in April

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The National Statistics and Geography Institute (INEGI) reported this week that inflation in Mexico hit 4.65% last month, the highest rate since September 2012. The inflation has been blamed mostly on rising food and transportation costs. Prices for produce and other food have been on a steady uphill climb since January, but last month the price of serrano chiles jumped up 31.22%, limes went up 19.85%, potatoes 9.56%, eggs 3.45% and chicken 2.05%.

The president of the Banco de México, Agustín Carstens, warned that inflation would continue throughout May and prices would not start to go down again until June. The central bank also increased their estimated annual inflation rate for 2013 to 4%. As a comparison, the United States inflation rate was recorded at 1.5% in March.

Overall the economy is plugging along, but according to Bloomberg: “Mexico’s economy has continued to show signs of slowing, with retail sales surprising analysts in February by contracting for the second time in three months. Mexico’s gross domestic product will expand 3.5 percent this year, down from 3.9 percent in 2012, according to the median estimate of economists surveyed by Bloomberg.”

Sources:

Proceso, Alzas en productos agrícolas disparan inflación a 4.65% en abril (May 9)

Bloomberg, Mexico likely to keep 4% rate on expectations inflation to slow (Apr 26)