The items that have risen the most are processed foods, beverages, tobacco and some services, although electricity remains at normal levels. This is the largest one-month increase since 1998.

According to the report, the 12-month expansion of general inflation was 7,45% in this third month of the year. In the last Citibanamex survey, analysts predicted an annual average of 7,34%. This surpassed the 3,0% overall target set by the Bank of Mexico.

The report points out that the minimum basic basket, made up of 176 products and services, registered a year-on-year growth of 8,07%. Core inflation, which excludes energy and agricultural products, increased by 0,72% in the month and 6,78 in annualized terms.

This inflation is not transitory, Alfredo Coutiño said, country director of Moody’s Analytics, who also assured that without energy subsidies, especially gasoline and gas, inflation would have been much higher.

The producer CPI, including oil, registered an increase of 1,96% in March and 10,36 in annual terms. By activities, the highest increase in prices was in the agricultural sector, with an increase of 15,11%, followed by the industrial sector, with 12,84, the report adds.

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