Inflation Trends in the United States and Mexico
Inflation rates in both the United States and Mexico showed signs of easing in September 2024, providing some relief to consumers in both countries. In the U.S., the Labor Department reported a consumer price growth of 2.4%, slightly above expectations but still marking the slowest pace since February 2021. Meanwhile, in Mexico, the National Consumer Price Index (INPC) recorded an inflation rate of 4.58%, down from 4.99% in August, indicating a positive trend in the Mexican economy.
Key Drivers of Inflation
In the U.S., food and housing costs continued to be significant contributors to the inflation rate. Housing prices rose 4.9% year-on-year in September, reflecting ongoing challenges for consumers facing higher costs for everyday goods and services. Conversely, Mexico saw a decrease in agricultural product prices, which contributed to the overall decline in inflation. Core inflation in Mexico also fell to 3.91%, marking its lowest rate since February 2021, driven by a decrease in prices for goods and services.
Economic Implications and Political Reactions
The inflation situation is a hot topic in the lead-up to the November elections in the U.S., where rising prices have become a primary concern for voters. Former President Donald Trump has criticized the Biden administration's spending policies, linking them to inflation, while Vice President Kamala Harris has proposed measures to cap rent and grocery price increases. In Mexico, analysts have revised the year-end inflation projection downwards, but caution remains due to potential upward pressures from electricity rate adjustments. Both countries are navigating complex economic landscapes as they address inflationary pressures.
