Last week, the President of the Republic celebrated the inflation figure of 5.84% of the month of May 2023 and assured that it was the result of his plan against inflation and the complementary strategy of Banco de México, however, there is something that he forgot or did not want to say, and that is that today we have the most expensive food in the last 24 years.
While it is true, the headline inflation has slowed in the last 8 monthswe went from 8.70% in September 2022 to 5.84%, which was achieved, not by the President’s management, but by a tight monetary policy of the Bank of Mexico, who implemented 15 upward adjustments to the target interest rate, which went from 4.0% in June 2021 to 11.25% as of today, that is, the consequences of lowering inflation is to increase the interest rate that it reflects the cost of money for families and companies, reducing financing, economic growth and job creation.
In Culiacán, general inflation is 6.40% annual ratewhich places us among the 13 cities in the country with the highest inflation.
However, the Inflation that continues unstoppable is that of food, beverages and tobaccowhich is the most sensitive for citizens, because people can stop buying any merchandise or service to save, but they cannot stop feeding their families.
In May 2023, inflation in food stood at 11.44%, this is twice general inflation and is the highest inflation in the last 24 years, which demonstrates the failure of Federal Government programs to contain prices of the basic food basket, such as the Package Against Inflation and Famine (PACIC) and the Opening Agreement Against Inflation and Famine (APECIC).
Both Decrees opened the borders, without paying tariffs or health permits, which caused a record imports and distortion of regional marketsbut without this translating into cheaper food for consumers, the only thing they achieved was to increase the profit margin of importers and food distributors in the country.
It should be noted that, inflation is considered the cancer of the economybecause literally it devours the salaries of workers and reduces the purchasing power of familiesthat is, the amount of goods and services that can be bought with a certain amount of money.
and precisely it is the poor who are most exposed to inflationsince they lack the means to preserve their purchasing power and are the ones who have to look for cheaper food, which impacts the nutrition of their children, in short, inflation makes the poor poorer, perhaps that is why Morena says that “first the poor”.
While Entrepreneurs hedge against inflation by raising prices and buying real estateinvestments or high-yield trusts.
In conclusion, today we have the most expensive food in the last 24 years, but as the ad says: “tortillas are $26 a kilo, but lithium has been nationalized; the kilo of beef is over $200, but Iberdrola bought it; and, the egg bag is over $100, but he built an airport that no one uses.”
For this reason, I ask you, dear reader: what do you prefer, whether food prices go down or whether the minimum wage continues to increase, which only benefits 6 of the 59 million workers in the country?
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