(Bloomberg) -- Avocado prices led inflation in Mexico last month, advancing at the fastest pace in over a year, as higher fertilizer costs and supply chain disruptions continue to hit the fruit used for guacamole.
The price of avocados jumped 19% in May compared to the month before and was responsible for 0.07 percentage points of headline month-on-month inflation, above any other product including fuels, Mexico’s national statistics institute reported Thursday.
An index tracking avocados from the Mexican state of Michoacan, where most of the country’s production comes from, is up almost 140% so far this year to 1,000 pesos ($51) per 9-kilogram box, the highest in data going back to 1998.
Avocado prices have “been exacerbated by supply-side factors such as the increase in fertilizer prices,” said Pamela Diaz Loubet, a Mexico City-based economist at BNP Paribas.
MEXICO REACT: May CPI Offers Some Respite, Risks Still High
Overall inflation in Latin America’s second-largest economy slowed slightly to 7.65% annually from 7.68% in April, but remained close to a 21-year high while core inflation, which excludes volatile items like fuel, accelerated to 7.28%.
Electricity prices slowed due to seasonal tariff reliefs in May and had the biggest downward pull on Mexico’s inflation.
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