The inflation is he widespread and sustained increase of the prices in a economyduring a time frame certain.
Also, to the inflation He is considered the cancer of the economy or as a regressive taxbecause affects those who have the least the mostreducing their purchasing power or their “purchasing power”, which represents the amount of goods and services they can buy with the same amount of money.
When the weather rises inflationlower the purchasing power and the families become impoverishedthat’s why they are so important decisions of the Monetary Policy of the Bank of Mexico that seek to control the inflationby raising interest rates.
Precisely, just over 2 weeks ago, the Board of Governors of the Bank of Mexico decided to maintain the target interest rate at 11%, while in USA is in the range 5.25%-5.50%.
However, there is the possibility that again interest rates increase in the face of the rise of the inflationwhich stands at 4.98% at an annual rate as of June and shows an upward trend in the last 4 months, but, in addition, it is the highest inflation so far in 2024, almost comparable to the inflation of June last year (5.06%).
It should be noted that inflation of 4.98% is well above the 3.8% target of the Bank of Mexico and the Ministry of Finance and Public Credit (SHCP)although it is expected to drop to 3.3% by 2025 and 3% by 2026.
The items that have put the most pressure on inflation are “fruits and vegetables”, where prices have increased by 19.73%, that is, 3 times more than the general inflation and it is the item that most affects the economy of families, because people can stop buying any merchandise, but they cannot stop eating.
Another sector that is driving inflation is education, which stands at 6.35%, which is 1.5 percentage points higher than the same month last year.
On the other hand, the “energy and government-authorized tariffs” category, such as gasoline, diesel, electricity and gas, increased by 5.28% in the last 12 months. All of these items are above general inflation.
If we analyze it by sexennium. With Andres Manuel Lopez Obradorthe accumulated inflation in the first 5 years and 7 months has been 32%, compared to 24% with Enrique Peña Nieto, 26% with Felipe Calderón and 27% with Vicente Fox.
That means With AMLO we have had the highest accumulated inflation of the last 4 six-year terms and is only surpassed by Ernesto Zedillo Ponce de León, when the six-year inflation reached 215%.
If we analyze it by cities, the 5 cities in the country with the highest inflation are: Oaxaca with 6.36%, Tapachula, Chiapas (6.31%), Pachuca, Hidalgo (6.17%), Puebla (5.97%) and Mérida, Yucatán (5.82%).
While the city of Culiacán has one of the lowest inflation rates in the country with 4.69%, which places us below the national average.
It should be remembered that in order to control inflation, it is necessary to tighten monetary policy, that is, increase the target interest rate, which means making money more expensive, reducing credit and investments, which ultimately negatively impacts economic growth and job creation.
This is the historical dilemma between controlling inflation or increasing unemployment and one must always choose between one of the two variables.
So, I ask you, dear reader: when you go to the market, which and how many products have you stopped consuming because of high prices?
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