Mexico's inflation spikes in August, driven by rising fuel costs
The National Institute of Statistics reported a sharp increase in Mexico's inflation for August, the biggest rise since early 2023, largely due to higher fuel prices.
Mexico's consumer price index rose sharply in August, the Instituto Nacional de Estadística confirmed, representing the most significant monthly increase since February 2023 and continuing a series of months with inflation above three percent. The jump was driven primarily by a steep rise in fuel and lubricant prices for personal vehicles, even though the government applied a short-term discount of ten centavos per litre on gasoline and diesel during the month.
The discount will increase to twenty centavos for diesel in September, while the gasoline subsidy will be reduced. Prices for food and non-alcoholic drinks stayed near the previous year’s level, and the underlying core inflation rate slipped modestly. The harmonized consumer price index also recorded a higher year-over-year rate, and the first vice-president and economy minister, Carlos Cuerpo, pledged continued support for families facing price pressures.
Why it matters
Higher inflation reduces purchasing power, especially as fuel costs rise, affecting households across Mexico.
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