In January, Mexico experienced an inflation rate of 3.79% year-on-year, reflecting a significant rise in underlying inflation mainly influenced by increased prices in beverages and tobacco. This uptick is attributed to recent fiscal adjustments that took effect this year, which have had a pronounced impact on consumer pricing. The underlying inflation specifically reached 4.52%, marking its highest level in 22 months, pointing to a concerning trend for consumers as price pressures mount.

Detailed insights reveal that overall goods increased in price by 4.56% annually, with the most notable surge being in the food, beverages, and tobacco categories that saw an increase of 6.13%. This rise in commodity prices suggests a potential tightening of household budgets, as essentials become more costly. On the other hand, service prices rose by 4.48%, reflecting a slight acceleration compared to the previous month, indicating that the services sector is also feeling the effects of inflationary pressures.

Economic analyst Alejandra Marcos from Kapital highlighted that while the inflation index has intensified, it remains below expected levels. The moderation in the non-underlying index, which rose by just 1.39%, the lowest in three months, offers some relief. However, the overall trend indicates that consumers may continue to face challenges as fiscal and price dynamics evolve in the coming months, necessitating close monitoring of economic policies and their impacts on inflation.