Inflation: most Mexicans already perceive the price increase when making their purchases

Most Mexicans have perceived in their pockets the increase in prices of the products they consume in the face of incessant inflation that has maintained an upward trend for more than a year, according to data from the survey carried out by Mintofsky Consultation.

According to the results of the demoscopic exercise, 86.2% of the people surveyed responded that they have noticed the price increases, given the growing inflation faced in Mexico and the rest of the world. While 13.8% responded that they have not perceived this situation.

When asked about their perception of how much prices have increased, almost four out of 10 of those surveyed considered that the increase has been between 1 and 10%, while 26.3% of those consulted consider that prices have risen more than 30 per cent.

At least a third of those interviewed by the polling house directed by Roy Campos say that they usually buy their products in the Supermarket (33.5%); 22.6% said that they make their purchases in tianguis and street stalls; 21.7% answered that they get their supplies in grocery stores and 20.7 of the people answered that they buy their products in public markets.

The National Institute of Statistics and Geography (inegi) revealed that inflation accelerated during April and registered its highest level since January 2001.

In the fourth month of 2022, the National Consumer Price Index (CPI) showed an increase of 0.54%, with which, at the annual rate, inflation reached a level of 7.68 percent.

This is its third record accelerating in a row, and 14 months in a row in which inflation is above the Bank of Mexico’s target (Banxico) of 3% +/-1 percentage point.

The accelerated trend in inflation rates is not a problem facing Mexico in isolation; the rest of the world is seeing prices rise across the board. Economic organizations and financial institutions project that this trend could last for the remainder of 2022, all of 2023, and even into 2024.

The reactivation of commercial activities after the collapse of the covid-19 pandemicthe scarcity of raw materials and the alterations in the supply chains have conspired in favor of the increase in prices, coupled with the war between Russia and Ukraine.

In Mexico, the federal government recently presented a plan with which it seeks to counteract the effects of inflation that consists of various actions agreed upon with the Private Initiative, among which are the stabilization of energy prices, the increase in grain production , the delivery of fertilizers and the elimination of the compensatory quota for ammonium sulfate.

Regarding distribution measures, the federal authorities seek to strengthen the highway security strategy to monitor the movement of merchandise that has been reduced by organized crime on the main transport routes. The price of highway tolls will also be maintained and rates will not be increased during this year.

Most of the factors that continue to put pressure on the CPI (National Consumer Price Index) are external: scarcity of raw materials, disruptions in global supply chains, setbacks in international trade due to sanctions and the slow pace of global economic recovery. Against this background, curbing the increase in consumer prices seems like a complex task.

Analysts and organizations from now on project that, in addition, this trend is not transitory and will be putting pressure on the purchasing power – and consequently food security and access to social rights – of households until 2024.

(With information from Ana Karen Garcia.)

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