Introduction to the Instituto Nacional de Estadística y Geografía (INEGI) and the Importance of the INPP
The Instituto Nacional de Estadística y Geografía (INEGI) is Mexico’s primary statistical agency, responsible for collecting, analyzing, and publishing official statistics. Among its key indicators is the Índice Nacional de Precios al Productor (INPP), which measures the average change in prices received by domestic producers for their output. Understanding the INPP is crucial as it provides insights into production costs and helps predict future inflation trends.
August 2025 INPP Performance
In August 2025, the INPP reported a 3.33% annual growth rate, accompanied by a monthly decrease of 0.35%. This moderation in growth compared to the 4.93% annual increase recorded in August 2024 highlights a sustained trend of price moderation over the past year.
Monthly and Annual Variations by Destination of Production
The report reveals differences based on the destination of production. Intermediate goods and services experienced a monthly decline of 0.80%, but an annual increase of 3.17%. Meanwhile, final goods and services saw a monthly decrease of 0.17%, yet an annual growth of 3.41%.
Sector-wise Analysis
By sector, primary activities showed the largest monthly regression of 6.01%, mainly due to a 30.61% drop in poultry prices. Secondary activities experienced a monthly decrease of 0.11%, while tertiary activities saw a 0.08% decline.
- Annually, the primary sector contracted by 1.57%, while secondary activities grew by 3.03% and tertiary activities advanced by 4.47%.
Key Products Influencing INPP in August 2025
Certain products significantly impacted the INPP’s behavior in August 2025. Poultry, experiencing a 30.61% drop, led the decline, followed by chicken in bulk (12.24%), eggs (17.90%), and passenger air transport (-10.76%). These declines reflect notable reductions in essential food items and certain services.
Conversely, other products showed increases that pushed prices upward. Passenger vans rose by 1.50%, restaurants and cafeterias increased by 1.03%, university services advanced by 1.3%, refined silver gained 1.47%, and lemon prices surged by 13.36%. This contrast demonstrates how price dynamics in various sectors can either balance or amplify within the overall index.
Inflation Trends
The INPP’s August 2025 results come amidst a broader price deceleration. According to earlier INEGI data, the Índice Nacional de Precios al Consumidor (INPC), which measures consumer inflation, has hovered around 4% annually during the 2025 summer, below the 2024 level exceeding 5%.
In the first half of August 2025, the INPC recorded a 0.23% bi-weekly and 4.12% annual growth, mirroring the INPP’s trend: moderation compared to the previous year but with upward pressures on certain foods and services.
While the INPC directly affects household budgets, the INPP offers a production perspective. Both indices converging near 4% annual growth suggests that producer and consumer prices are beginning to stabilize after the 2022-2023 volatility, marked by external shocks in energy and food.
Methodological Update
INEGI highlighted that, starting with this publication, the INPP is now measured using an updated basket and weighting structure. This enhancement ensures greater representativeness by incorporating 570 items and adjustments from the latest Censos Económicos and national accounts.
The new methodology maintains July 2019 as the base period but now includes a chaining mechanism for continuous statistical series. The next INPP release is scheduled for October 9, 2025, where observers can assess if the price stabilization trend in production holds.
Key Questions and Answers
- What is the INPP, and why is it important? The INPP measures the average change in prices received by domestic producers for their output. Understanding it helps predict future inflation trends and production costs.
- What were the August 2025 INPP results? The INPP grew by 3.33% annually, with a monthly decrease of 0.35%, reflecting a sustained trend of price moderation compared to the 4.93% annual increase in August 2024.
- How did different sectors perform in August 2025? Primary activities experienced the largest monthly regression of 6.01%, while secondary and tertiary activities showed annual growth of 3.03% and 4.47%, respectively.
- What products significantly influenced the INPP in August 2025? Poultry, chicken in bulk, eggs, and passenger air transport significantly contributed to the downward pressure on prices. Meanwhile, passenger vans, restaurants and cafeterias, university services, refined silver, and lemon prices pushed prices upward.
- What are the broader inflation trends? Both the INPC (consumer inflation) and INPP (producer prices) show signs of stabilization after volatile years, with the former hovering around 4% annually and the latter converging towards this level.
- What changes were implemented in the INPP measurement? INEGI updated the INPP’s basket and weighting structure, enhancing its representativeness by incorporating more items and adjustments from recent economic censuses and national accounts.
