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Avocado’s 19% Price Spike Drives Mexico Inflation Amid Fertilizer Shortages

  • Staple food was the biggest inflation contributor last month
  • Mexico’s headline inflation remains close to 21-year high
Workers sort avocados into boxes at the Grupo Aguacatero Mexicano (Gamex) packing facility in Periban, Michoacan state, Mexico, on Thursday, Sept. 23, 2021.

Workers sort avocados into boxes at the Grupo Aguacatero Mexicano (Gamex) packing facility in Periban, Michoacan state, Mexico, on Thursday, Sept. 23, 2021.

Photographer: Jeoffrey Guillemard/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.