Inflation and monetary policy In recent months, annual inflation has been rising, and since last June, it has surpassed the upper limit of the variability interval of plus or minus one percentage point around the Bank of Mexico’s permanent 3 percent target.
A central element behind this deterioration has been significant price increases registered by agricultural products, resulting mainly from international drought and the outbreak of bird flu in Mexico. These effects have manifested themselves primarily in the non-core component of the National Consumer Price Index (INPC), which includes those items that tend to exhibit the highest price volatility.