Inflation does not give truce to Mexico and sets a new record with upward risks

Mexico City, May 9 (Latest) .- The rise in prices does not give rest to the Mexican economy, which this Monday reported an annual general inflation of 7.68% in April, its highest level since January 2001, with growing upside risks, particularly for food.

Prices rose 0.54% per month in April, which represents the third consecutive month on the rise, according to the National Institute of Statistics and Geography (Inegi).

With these data, the expectation of the private sector is an inflation of 7% at the end of the year, more than double the goal of 3% of the Bank of Mexico (Banxico), but there are risks of higher prices, warned Efe Gabriela Siller, director of economic analysis at Banco Base.

“If these same inflationary pressures continue until the third quarter, this would imply a scenario where inflation could close in Mexico at a level of 10%, an adverse scenario that cannot be ruled out yet,” the analyst commented.

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FOOD AND UNDERLYING ON THE UPWARD

On an annual level, agricultural prices increased by 14.36%.

And the three products with the highest monthly increase in price were serrano chili (25.65%), tomato (20.23%) and avocado (13.94%), basic products of the Mexican diet.

Likewise, the minimum consumption basket, made up of 176 products and services, showed a rise of 0.44% monthly and 8.31% year-on-year.

While the underlying price index, considered a better parameter to measure the general shortage because it eliminates items with high volatility in their prices, also increased 0.78% monthly and left the annual rate at 7.22%.

“Unfortunately in Mexico, the underlying component, which is what determines inflation in the medium and long term, is on the rise again, rising for 17 consecutive months,” said analyst Siller.

NATIONAL PLAN, IMPORTED PROBLEM

President Andrés Manuel López Obrador, who last week unveiled an anti-inflation plan consisting of an agreement with businessmen to control the prices of the basic food basket, announced Monday that he will begin a tour with agronomists to promote self-consumption.

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