Prices are rising to levels 22 years ago

Inflation in Ciudad Juárez accelerated again in the first 15 days of November, reaching 7.09 per cent year-on-year, the highest level in a similar period in the last 22 years.

According to the National Consumer Price Index (INPC), this increase was driven by the cost of gasoline, gas and certain foods.

The figure turned red in business and for civil servants, as it affects the purchasing power of the population.

The report from the National Institute of Statistics and Geography (Inegi) shows that inflation in the first half of this month is also the second highest so far in 2021, after 7.20 percent in the second half of April. The second half of October closed with 6.61 percent.

From January to November this year, accumulated inflation is 6.93 percent.

From the first half of November last year to the same period in 2021, foods such as melon accumulated an increase of 76.09 percent, serrano pepper 62.47 percent and avocados 38.73 percent.

In the past year, watermelon rose 37.69 percent, cucumber 28.06 percent, pear 20.28, lemon 18.53 and apple 12.74.

Other foods such as corn tortillas increased by 14.80 percent, beef by 14.58 percent and beans by 15.37 percent.

In terms of energy, Inegi data reflects annual inflation of 37.70 per cent for natural gas, 21.56 per cent for LP and 3.68 per cent for electricity.

At the same time, petrol accumulated an increase of 40.44 per cent in the high octane range and 30.94 per cent in the low range.

At the national level, INPC also accelerated and registered an annual variation of 7.05 percent during the first half of November, the highest level in 20 years.

The country’s inflation would have gained momentum due to the electricity tariff program ending its period in November, as electricity showed a level of 24.16 percent.

Other products that increased in price throughout the country were green tomatoes, by 42.06 percent, and fresh chili peppers, 19.77 percent.

More expensive and more expensive

In the city of Chihuahua, Edibray Gómez, President of the National Chamber of Commerce (Canaco); José Guillermo Quintana, general coordinator of business development in the municipality of Chihuahua, and Jesús García, director of state trade, emphasized that as inflation increases, goods and services become more and more expensive.

“Mexico had remained stable with an indicator of the national consumer price index of between three and four percent, and the increase affects the economic and financial sphere,” says Gómez.

He noted that better strategies are needed from the federal government to mitigate the upward trend in inflation in Mexico.

Quintana said the INPC, at the end of the second half of November, was 7.01 in the entity.

Mexico Association, How Are We Going? He stressed that the inflation path is very worrying and stressed that it has already added 17 fourteen days over the upper limit of four percent of the Bank of Mexico (Banxico).

Based on the latest data published by Inegi, he explained that in the first half of November 2021, he placed the national traffic light for inflation in red, emphasizing that this is the highest data recorded in more than 20 years.

He pointed out that annual inflation continues above Banxico’s target and its range of 3% +/- 1%.

Inflation data for the first half of November were above the market consensus of 6.8 percent.

He added that the path of core inflation is very worrying and shows no reaction to the four consecutive increases in the reference rate from Banxico.

Given the maturity of summer prices (warm seasonal electricity price programs) in several cities, electricity was the generic with the highest prevalence.

Despite the reduction in the biweekly variation in domestic LPG, the current maximum pricing strategy and Gas Bienestar operations are deficient in protecting Mexican families from international price pressure, he said.

The specialists estimated that the energy companies will continue to show an increase in their prices due to supply problems (bottlenecks in production) as winter approaches.

They suggested that the situation is an opportunity to anticipate and limit the negative effects that Mexican families face, so the Ministry of Welfare should plan a program of transfers for the most vulnerable.

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