- Index hide
Inflation in Mexico has already chained 16 months in a row above the target range calculated by the Central Bank of Mexico (Banxico), between 2 and 4 percent.
The IMCO mentioned that since the second half of 2021, not only has there been an increase in inflation rates, but the gap in costs for low- and high-income households has also widened.
Despite the numbers, President López Obrador celebrated the success of the Package Against Inflation and Famine (PACIC).
In the morning conference at the National Palace, President Andres Manuel Lopez Obrador made it clear that the measures of the Package Against Inflation and Scarcity (PACIC)implemented by your government two and a half months ago, were taken on time.
“With these measures we guarantee that there is control in the increase in prices, that fortunately we made decisions in time and that it was correct to allocate a subsidy so that the price of gasoline does not increase. Remember and we must all remember, not forget, that only in the previous government, and it was the mentality that prevailed, there were gasolizanos, “he declared.
However, general inflation in Mexico marked an annualized rate of 8.16 percent in the first 15 days of July.
The value was the highest since December 2000, according to the data published on Friday, July 22 by the Inegi. It is the first time in more than 20 years that the National Consumer Price Index (INPC) exceeds the 8 percent ceiling.
Likewise, inflation in Mexico has already chained 16 months in a row above the target range calculated by the central bank of Mexico (Banxico) of between 2 and 4 percent.
Own Bank of Mexico he had warned that inflation could reach 8.1 percent year-on-year, although he mentioned that it would happen at the end of the third quarter of 2022.
The inflation level in Mexico has also exceeded the expectations of the analysts surveyed by Citibanamex, who calculated an increase of 7.96 percent.
According to INEGI statisticsfood was the cause of the high inflation of the first two weeks of July, with oranges, eggs and potatoes as the main drivers of price increases.
In general, all agri-food products rose notably, in some cases, with increases of more than 6 percent per month.
Oranges and eggs increased despite integrating the 24 products of the so-called “Package Against Inflation and Scarcity” that AMLO launched in May with the aim of avoiding a further increase in the price of the basic basket.
Secondly, there are the brands that made an adjustment for inflation in the cost of their products. An example of this can be seen with the shortbreads six pieces of bimbo, which went from costing 24 pesos to 27 pesos; the famous Bimbo Donuts they also had an adjustment from 18 to 20 Mexican pesos.
But despite this, a recent study detailed that Mexican companies continue to expand despite economic concerns and supply chain challenges.
Returning in the morning, the president Andres Manuel Lopez Obrador He stressed that there was also no increase in taxes thanks to the measures.
“We also decided not to increase taxes, because in addition to the fact that the tax increase increases prices, some distributors take advantage, not all of them, and if there is a 5 percent tax increase, they take advantage of it to increase the price of their merchandise by 1o or 15 percent,” he said.
“Even if they don’t like it, because we Mexicans don’t have to go to the rear, in what happens in the world, we Mexicans are already at the forefront, setting an example. Although it may not seem like it, inflation in Mexico is lower than that of the US and lower than that of Europe. Our peso is strong, it has not been devalued, and it has resisted”he added.
The Mexican president said that some distributors were looking for him at the end of the year to confirm if the Federal Government was going to increase the prices of some products.
“Every year’s end, when the Revenue Law is going to be approved, now they even look for me to say ‘and there will be no increase in the price of soft drinks, and there will be no increase in the price of tobacco, of beer; there is not going to be an increase in the price of other merchandise,’ and no, ‘there is not going to be, so that you don’t have the pretext of abusing,’” he indicated.
President López Obrador concluded by saying that the Package Against Inflation and Famine is yielding results.
“We made decisions on time and it was wise to allocate a subsidy so that the price of gasoline did not increase,” he pointed.
However, the IMCO mentioned that since the second half of 2021, not only has there been an increase in inflation rates, but the gap between the rise in costs for low-income and high-income households has also widened. But only time will tell how successful the President’s Package Against Inflation and Famine.
Now read:
AMLO celebrates recovery of more than 8 thousand archaeological pieces
Profeco shows the “illegal salaries” of officials who earn more than AMLO
Grandparents of TikTok the biggest fans of AMLO