Inflation in Mexico Shows Improvement, But Concerns Remain for Services Sector
Mexico City- General inflation in Mexico saw improvements in February, but concerns are arising in the services sector, specifically in lunch shops and restaurants. Jessica Roldán, director of Economic Analysis at Casa de Bolsa Finamex, warned that the rate of inflation in these areas could negatively impact overall inflation rates.
Roldán expressed particular concern for loncherías, fondas, torterías, taquerías, and restaurants, which make up a significant portion of the inflation rate. In the second half of February, inflation in these establishments rose to 7.70 percent and 6.61 percent, respectively.
The increase in inflation in these sectors is believed to be driven by strong demand and rising costs, potentially tied to increases in minimum wages. If these high inflation rates persist into March, Roldán cautioned that adjustments may need to be made to the estimates for general inflation throughout the year.
While the general inflation figure for February was 4.40 percent annually, Roldán advised caution as this number is influenced by volatile prices of agricultural and livestock products. Monitoring the inflation rates in the services sector will be crucial in determining the trajectory of inflation in Mexico moving forward.