Mexico City.- The lack of competition in products and services causes some states of the country to face inflation rates higher than those registered at the national level, warned the Mexico Observatory, how are we doing?
Adriana García, the organization’s analysis coordinator, pointed out that this causes inflation to be higher in some southern states, compared to those in the center, where there are more options to purchase products at a lower price.
“We refer to a greater production of different producers, not just more than one, which allows for better price conditions due to competition.
“More companies are needed, greater diversification so that consumers can choose quality products that we want but at a lower price,” he said.
He considered that a crucial aspect to determine the prices of products is mobilization and in some parts of the southeast the communication routes are not optimal.
“It is not the same to buy a kilogram of bananas in a remote place where transportation to take them was very expensive, than to the center where there are roads,” he said.
In the central region of the country, he explained, there is greater connectivity and security, which benefits economic competition.
Therefore, he considered, in the medium and long term, inflation can also be mitigated with better communication channels, an environment that favors economic competition, as well as the strengthening of the rule of law.
While general inflation was 7.12 percent at the annual rate in the first half of March, according to Inegi, in Yucatán it was 8.9 percent, in Michoacán 8.6 and Oaxaca 8.3 percent.
In contrast, in Querétaro it was 6.1 percent, Mexico City 6.2 and Chihuahua with 6.3 percent at an annual rate.
