Have risen almost 100% since 2018; inflation could drop until 2024

The strength of the peso against the dollar is a macroeconomic indicator, however, the real economy of families has suffered from inflation for some years

He Bank of Mexico (Banxico) pointed out that in January 2023 headline inflation increased to settle at 7.91% and stressed that to the surprise of the market, the prices of food and services will have a slower decline than expected.

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Although the macroeconomic value of the exchange parity It seems good, in the family economy the prices of products continue to rise. In this sense, the analyst Carlos López Jones made a comparison of the cost, in pesos and dollars, of the basic basket of the year 2018 and in 2023.

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Other examples that have caused a great impact among the population due to the jump in prices are that of meat, which went from an average of 90-120 pesos per kilo to 160-220 pesos, while the tortilla rose from 12 pesos. per kilo to 24 in some regions of the country.

For example, between 2018 and 2023, the price per kilogram of eggs went from 24 pesos per kilo to 54; the liter of cooking oil, from 32 pesos to 65; the kilo of rice, from 22 pesos to 45 kilos; sugar, from 14 pesos to 28; the bean, from 21 kilo pesos to 38.

In recent years, some products have increased their prices by up to 100%, and although the war between Russia and Ukraine accentuated the inflation problem, the upward trend has not been reversed. In recent years, the minimum wage has also registered increases, however, it has not been enough to maintain the purchasing power of consumers.

For 2023 and 2024, inflation expectations increased again, while longer-term ones decreased slightly, although they remain above the target, Banxico explained after the decision on February 9 to increase the interest rate to 11% as a measure to curb the escalation of prices in the country.

On February 10, President Andrés Manuel López Obrador considered that inflation levels are not cause for alarm.

“I think that it is the last increase that by the way was not much higher than expected, it did not even reach a point, it is at 7.7%. So we think that it is going to drop more, we are not going to stop facing the inflationary problem, it worries us and it occupies us but it is not to be alarmed” López Obrador cut short in contrast to Banxico’s analysis.

Given a slower-than-expected disinflation process, the forecasts for headline and core inflation were adjusted upwards for the entire horizon, explained the central bank, which anticipated that inflation would converge to the 3% target until the fourth quarter of 2024.