Banxico’s increase is in line with the adjustment made by the United States Federal Reserve last week by three quarters of a percentage point, to leave it in a range of 1.5% to 1.75%.
In its statement, Banxico’s Governing Board pointed out that the greatest challenges for conducting monetary policy are the tightening of global financial conditions, the environment of heightened uncertainty, the geopolitical conflict, and the resurgence of COVID-19 cases in China.
Why is there such high inflation in Mexico?
This Thursday morning, the Inegi reported that inflation in the first half of June reached 7.88% per year, its highest rate in almost 20 years.
High inflation is a global problem and has reached its highest in decades in developed economies such as the United States and England.
In the case of Mexico, the rise in prices is due in part to the significant lag in the production of containers worldwide and in the generation of microprocessors, which is not only related to the automotive industry.
Russia’s invasion of Ukraine has also put pressure on international oil prices and grain supplies.
In addition, there are geopolitical tensions that began in 2018-2019 with the trade conflict between the United States and China, which prompted the need to relocate companies to areas where they could have more resilience.
More information in a moment