The president of Mexico, Andrés Manuel López Obrador, assured today Wednesday that local inflation shows a downward trend, supported by the decline in international prices and the support plan for Mexican families.
In his usual daily press conference, the president indicated, however, that the country’s inflation is the main economic concern of his administration, especially with regard to food.
“It fell a little, but the important thing is that there is already a downward trend,” López Obrador explained to journalists at the National Palace, in Mexico City.
Earlier, the National Institute of Statistics and Geography (Inegi) reported that the National Consumer Price Index (INPC) moderated to 8.41 percent year-on-year at the end of October, from the previous 8.70 percent.
López Obrador highlighted that fuel prices and electricity rates have been kept under control, thanks to the subsidy scheme that the government applies to avoid abrupt variations.
However, López Obrador’s administration, which began in late December 2018, is still seeking to reduce pressures on food prices, with the support of producers and distributors.
“Food prices are already falling internationally, in any case we are going to continue with the measures, which are not mandatory price controls, but based on agreements,” the president remarked.
The Government of Mexico announced on October 3 the expansion of an agreement with the private sector through which it seeks to contain the advance of inflation, especially in foods such as corn.
The measures represent a continuation of the so-called Package Against Inflation and Famine that has been in force since last May.
Mexico ended 2021 with an annual inflation of 7.36 percent, its highest level in more than two decades, due to the effects derived from the spread of the new coronavirus.
The central Bank of Mexico (Banxico) estimates that local inflation might end 2023 at 4.0 percent, to reach 3.1 percent by the third quarter of 2024.
The monetary entity has an inflation target of 3.0 percent, which it seeks to meet monthly.
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