The inflation in Mexico presented an increase of 4.26 percent annuallyhis lowest level since February 2021 and accumulated nine consecutive months of decline. However, this trend is not reflected in the price of products such as sugar.
According to Inegi, the National Consumer Price Index (INPC) It grew 0.38 percent in the tenth month of the year, compared to September, and among the products with the highest incidence was the so-called “white gold.”
Join the El Sol de México channel on WhatsApp so you don’t miss the most important information
The price of sugar had a 9.69 percent increase compared to September, however, since October of last year, the kilo of this product had a increase of 40.13 percentaccording to Inegi data.
The president of National Agricultural Council (CNA), Juan Cortinacommented that the drought situation affected 65 percent of the national territory, which has an impact on the price of several products, including sugar.
“The drought situation is serious, it is something that we have been experiencing for several years but that has worsened. This year’s sugar production decreased by just over a million tonsdue to the effect of the drought (…) Logically, this is also having and will have an impact on the issue of prices, supply is reduced and prices increase,” the manager declared to this medium a few days ago.
Data from National Information and Market Integration System (SNIIM)from the Ministry of Economy, point out that the average price of a 50 kilo bag of sugar refined increased more than 500 pesos between January and October, which meant an increase of 44.4 percent.
However, so far this administration, this price has more than doubled, going from 783 pesos in January 2019 to almost 1,670 pesos at the end of October. Increases in the price of sugar impact products such as soft drinks, one of the drinks most consumed by Mexicans. On Wednesday, the National Alliance of Small Merchants (Anpec) reported that some CocaCola brand products will gain weight on average starting next Monday, due to the inflationary effect and the rise in sugar.
The company kept its prices unchanged for more than a year, when in August 2022 it also adjusted some products by an upward weight. Juan Carlos Anaya, director of the Agricultural Market Consulting Group (GCMA)told El Sol de México that sugar has the highest prices in history derived from the drought in regions such as Veracruz, San Luis Potosí and Tamaulipas.
The specialist commented that although the price of the product has decreased in recent weeksFor the next 2023-2024 harvest, which is about to begin, production levels are expected to be similar or even lower than this year, which will have an impact on both national sales and exports.
In addition to sugar, among The products that boosted inflation in October were carrotswith an increase of 20.96 percent, as well as electricity rates and plane tickets, with increases of 19.23 and 13.37 percent, respectively.
➡️ Subscribe to our Newsletter and receive the most relevant notes in your email
On the contrary, between The products that showed the greatest decrease in prices last month were tomatoeswith a decrease of 14.46 percent compared to September; orange and onionwith reductions of 11.91 and 11.72 percent.
The result of inflation in the tenth month of the year was slightly lower than expected by analysts consulted by Citibanamexwhich forecast a level of 4.28 percent annually and an increase of 0.40 percent compared to September.