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As part of an extension option to the anti-inflation plan, businessmen would accept that it be extended until 2023.
During this season, an annual inflation of 7.77 percent is recorded, a drop compared to 7.8 in November.
The plan would seek to expand the 24 inputs and include new companies based on the so-called Universal Law.
One day after the new rise in inflation was announced, the Ministry of Economy would seek the expansion of products in the anti-inflationary plan, which would also add companies to the initiative and extend its validity until 2023. Let us remember that this new increase placed Mexico at 7.8 percent, above that found in the last three months.
Performance of inflation in the holiday season
The effect of the December season inflation has been located at 7.77 percent per year, again being a drop compared to the rebound that had been registered in November, of 7.8. This as reported by the National Institute of Statistics and Geography (INEGI).
In the new figures that were presented by the President of the Mexican Republic, Andrés Manuel López Obrador (AMLO), also the United States was located at a lower average than it had been in recent weeks. Thus, with this latest update, a more or less positive estimate is registered according to the estimate from the Citibanamex survey, where an increase towards 7.79 was registered.
Likewise, it was announced that he managed to spin with this already 43 fortnights outside the objective range of the Bank of Mexico (Banxico) which is 3 percent +/- one percentage point, being close to the 50 fortnightly accumulated between January 2017 and January 2019.
The National consumer price index has fared better, at 0.39 percent biweekly. This materialized once the decrease of 0.11 percent occurred, as a result of the season of commerce and purchases at the end of the year. With this, the market estimated a fortnightly increase of 0.41 percent, which is good news.
This has also been beneficial in terms of underlying inflation, since a consecutive decline was observed, reaching 8.35 percent annually in the first days of December, from 8.37 percent annually at the end of November. With this, although there was a slowdown, the average remained above market expectations, whose rate pointed to 8.32 percent per year. Thus, the fortnightly advance of this component was 0.57 percent, after a slight decline of 0.04 in the second half of November, which represented a larger increase than that of the first half of 2021.
With respect to non-core inflation (of agricultural goods and services, energy and government tariffs), the annual rate accelerated to 6.08 percent. Its decrease was 4.86 percent in the previous fortnight, however, in this one it decreased 0.14 percent.
In this way, the prices of agricultural products became more expensive by 0.34 percent, being their biggest increase since the first half of September. On the other hand, that of energy and government rates fell 0.54 percent at a biweekly rate, being its second period of decline.
They analyze the extension and extension of the anti-inflationary plan until the end of 2023
The Ministry of Economy, In order to put an end to the rise in prices that threatens inputs in 2023, it has announced that it will seek to include more business organizations and extend the validity of the anti-inflationary decree, at least until December 31, 2023.
Now that INEGI has released the new inflationary record for the first half of December, the secretariat announced that they will work over the next few days to curb this effect.
In the @I KNOWdependencies of @GobiernoMX meet to review the anti-inflationary decree to add more inputs, food and personal hygiene products, and extend the validity to December 31, 2023. In addition, a Single Universal License may be granted to more companies. pic.twitter.com/A0cmg7nvc7
– Economy Mexico (@SE_mx) December 23, 2022
With this, the list of the 24 products that make up the basic basket could be expanded. Right now the ones found are:
- Edible vegetable oil 1 piece of 946 ml
- Rice grain 1 kg
- Tuna flakes in oil (max. 5% soy) 2 cans of 140 g
- Standard sugar 1 kg
- beef 1kg
- White onion 1 kg
- jalapeno pepper 1 kg
- Pork 1kg
- Black beans 900 grams
- Chicken egg 1 package of 18 pieces
- Toilet soap 1 pc
- Tomato saladet 1 kg
- Cow’s milk 5 liters
- lemon 1kg
- apple 1kg
- Banana 1kg
- Boxed white bread 1 package of 680 grams
- White potato 1 kg
- Toilet paper 1 bag of 4 pieces
- Pasta for soup 1 package 220 grs
- Chicken Meat 1 kg
- Canned sardines in tomato 1 can of 425g
- Supermarket corn tortilla 4kg
- carrot 1kg
The Opening Agreement against Inflation and Famine (APECIC) has 15 companies:
- Antonio Suárez Gutiérrez, Tuny (tuna)
- Leovy Carranza Beltrán, Pinsa-Dolores Group (tuna)
- Juan Antonio González Moreno, Gruma-Maseca Group (tortilla)
- Altagracia Gómez Sierra, Minsa Group (tortilla)
- Daniel Salazar Ferrer, Bachoco (chicken and egg)
- Isidro Ávila Lupercio, San Juan (egg)
- Jesús Vizcarra Calderón, Sukarne (beef)
- Arnulfo Ortiz, Grupo Gusi (beef)
- José Zaga Mizrahi, Opormex (pork)
- Eugenio Caballero Sada, Sigma Alimentos (pork)
- Guilherme Loureiro and Javier Treviño, Walmart (distributors)
- Ricardo Martín Bringas, Soriana (distributors)
- Antonio Chadraui Obeso, Chedarui (distributors)
- Alfonso Celis, Socorro (egg)
- Alfonso Rosales Wybo, Valle Verde
With this initiative, the proposed six-month agreement would be extended for another year, which would allow these fifteen organizations to receive benefits such as flexibility to import inputs and products through the so-called Universal Law.
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