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Inflation in Mexico climbs to highest level in 20 years

MEXICO CITY
2021-11-25 04:39

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MEXICO CITY, Nov. 24 (Xinhua) -- Inflation in Mexico reached 7.05 percent year-on-year in the first half of November, the highest level in 20 years and more than double the official target, the National Institute of Statistics and Geography (INEGI) reported Wednesday.

INEGI President Julio Santaella explained on his Twitter account that the variation is the highest recorded since April 2001.

In the first half of November, the National Consumer Price Index grew 0.69 percent compared to the immediate preceding fortnight, according to INEGI.

Core inflation, the benchmark used by the central bank of Mexico for monetary policy decisions, advanced 5.53 percent year-on-year in the first two weeks of November, also above the official target of 3 percent.

In a report issued separately, the Banorte financial group explained that global energy costs and bottlenecks in trade flows are directly and indirectly affecting prices even more than anticipated.

"Pressures will continue due to supply and demand imbalances and the (COVID-19) pandemic," Banorte reported.

Inflation has accelerated in 2021 in Mexico, especially in prices of manufactured goods, raw materials, energy and services.
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