Overview
The second week of June will bring local economic reports on inflation, trade balance, industrial activity, the automotive industry, and international traveler arrivals in Mexico. In the United States, analysts will focus on the monthly variation of consumer prices.
Monday, June 9: Inflation
Indicators:
- National Consumer Price Index (INPC) for May
- National Producer Price Index (INPP) for May
- Light Vehicle Industry Administrative Record for May
On Monday, Mexico’s consumer price index will be released. This indicator measures the variation in prices of a representative basket of goods and services consumed by households, crucial for monitoring inflation and adjusting wages, pensions, and interest rates. The Instituto Nacional de Estadística y Geografía (INEGI) publishes this data monthly.
Additionally, the producer price index will be published. This reflects changes in prices of goods and services produced within the country before reaching the final consumer. It is essential for anticipating inflationary trends and is published monthly, benefiting companies, economic analysts, and monetary authorities.
Tuesday, June 10: Trade Balance
Indicators:
- Revised Mexican Merchandise Trade Balance (April)
- Results of the government securities auction
The Mexican Merchandise Trade Balance measures the difference between a country’s exports and imports, reflecting its performance in foreign trade. It is vital for evaluating competitiveness and its impact on economic growth. The INEGI’s revised figures offer greater accuracy in trade balance reporting.
Furthermore, the Banco de México will release results from the government securities auction every Tuesday. This information is relevant for understanding demand for local debt instruments and interest rate levels of tools like Cetes. It is crucial as it shows confidence in sovereign risk, system liquidity, and the anticipated direction of interest rates.
Wednesday, June 11: Industrial Activity
Indicators:
- Monthly Industrial Activity Index (IMAI) in Mexico for April
- International Traveler Survey (April)
- Heavy Vehicle Industry Administrative Record for May
- US Consumer Price Index (IPC) for May
- OECD’s crude oil inventory
The Monthly Industrial Activity Index reflects the performance of industrial sectors: mining, electricity generation, construction, and manufacturing. It is essential for assessing the economy’s health and guiding public policies. The INEGI publishes these data monthly, reflecting industrial sector dynamism or stagnation, crucial for national GDP growth.
Meanwhile, the US Consumer Price Index is globally followed as it measures the variation in prices of goods and services purchased by urban consumers. It is essential for evaluating inflation (impacting Reserve Fed decisions) and wage adjustments. The Bureau of Labor Statistics publishes this data monthly.
Thursday, June 12: Producer Prices in the US
Indicators:
- US Producer Price Index (IPP)
- New unemployment insurance claims in the US
On Thursday, expect the release of the US Producer Price Index, which measures the average variation in prices that domestic producers receive for their goods and services. It is crucial for anticipating inflationary pressures before reaching consumers, completing the inflation picture alongside consumer price data.
Additionally, new unemployment insurance claims are reported every Thursday in the US. This data measures how many people first sought economic support after losing their jobs, providing an insightful look at the labor market’s health and potential changes in consumption, economic growth, and monetary policy.
Key Questions and Answers
- What is being reported this week? Key economic indicators in Mexico and the US, including inflation, trade balance, industrial activity, and auto industry data.
- Why are these indicators important? They provide insights into the health of local and global economies, helping to adjust policies, anticipate trends, and measure the impact of those policies on growth and inflation.
- Who publishes these reports? In Mexico, the Instituto Nacional de Estadística y Geografía (INEGI) and Banco de México publish most of these indicators. In the US, the Bureau of Labor Statistics and other agencies release relevant data.
