He President Andrés Manuel López Obrador noted that the decrease inflation, which was posted at 5.84% in May, and the strength weight.
“Inflation is coming down,” he said this Thursday at a morning press conference in National Palace.
The President confirmed that the data released this Thursday National Institute of Statistics and Geography (Inegi), given after pandemic, V war from Russia And Ukraine”, which caused inflationary growth “all over the world”, he pointed out.
“We have also been affected by the measures applied to Bank Of Mexico, which is an autonomous institution, made decisions to raise the interest rate to control inflation,” he said.
Considering Inega’s results, he thanked the malls “because 24 products from main basket even cheaper for general consumption.”
“Remember that when there is inflation, it greatly affects your income. You can increase your salary, but if there is an increase in inflation, you will lose purchasing power,” he explained.
He also noted that the peso continues to strengthen. “It’s a phenomenon,” he said.
The Mexican peso began trading this Thursday almost unchanged against the dollar, unlike most of its peers in the region, as worries gripped the market over rising rates on new interest rate hikes from US Federal Reserve System (FRS).
At the same time, the national currency showed the longest bullish streak since March and reached new highs since May 2016, demonstrating resilience to the atmosphere of caution that prevails in the markets due to the possibility that the Fed will continue to tighten monetary policy at its meeting. next week.
The local currency was trading at 17.3591 per dollar, with a slight loss of 0.01% compared to the Reuters reference price on Wednesday.
This Wednesday, Inegi announced that National Consumer Price Index (INPC) It was positioned at 5.84% yoy, helped by government-approved price and tariff cuts in energy prices, which gave lower-than-expected data, the lowest level since the first half of September 2021, although it is still almost double the official level. the purpose of the central bank.
This was below the estimates of economic analysts, who had expected rates at 5.89%.
In turn, core inflation, considered the best measure of price trajectory as it excludes highly volatile products, also eased to 7.39%, its lowest level since May 2022.
Even though inflation has come down and Central Bank of Mexico (Banxico) lowered its expectations for the end of the year, the authorities recently said that the outlook for the indicator remains complex and uncertain.
Banco de México kept its benchmark interest rate unchanged at 11.25% last month, ending a cycle of monetary tightening that began in June 2021.
Last week, the minutes of the meeting showed that the Board of Governors believes it is necessary to keep the rate at the current level for an extended period in order to achieve an orderly convergence to a permanent inflation target of 3%.
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
