If we talk about the fight against inflation, we can say that, until now, the Bank of Mexico has lacked the convincing signal of its intransigence with the current escalation of prices, while the government of President Andrés Manuel López Obrador has taken fiscally expensive measures, but that they have helped to keep the increase in general inflation from being much higher.
The best thing, until today, is that President López Obrador has refrained from taking gimmicky measures that end up further damaging the economy, such as decreeing price controls on a group of products.
Yes, there is an arbitrary basket of products that adorns its Package Against Inflation and Scarcity very well and that has allowed these twenty items to present, on average, a lower cost than other merchandise not included in that group.
This package of products has served, but it has not been the center of the success of the government’s contribution to combating inflation. It adorns the presidential speech well, but the axis of the contribution has been the tax sacrifice of the collection of the Special Tax on Production and Services (IEPS) on gasoline.
Really, this tax discount on the cost of fuel has prevented general inflation from having a two-digit record and thereby affecting the formation of other prices more.
The removal of tariffs on imports of various food products also surprised more than one and although opening the market in this way is something that takes time to land with tangible benefits in the inflationary measurement, the opening is a positive measure for that purpose.
Of course, since there is a global problem with food prices, the drop in inflationary pressure may be less noticeable, but as long as there are fewer barriers, the result will be better.
I hope that this is the path that President López Obrador’s administration follows to contribute to price stability and does not enter a phase of desperation that leads his government to adopt authoritarian measures, such as price controls, that are counterproductive.
And on the other hand, the Bank of Mexico, in addition to perhaps making good forecasts of an increase in the interbank rate of 75 base points, it is necessary that its language is already clear and forceful against inflation.
Without margins to seek to accommodate the signals, but with a clear intolerance for inflation to remain so high and for so long.
Surely the central bankers have already taken note that their decisions are already affecting the exchange rate today.
Unlike all the decisions they made between June of last year and the previous month, when the exchange rate remained stable and entrusted to the passivity of the Federal Reserve, now there are exchange rate changes derived from the levels of interest rates .
With the level of financial maturity that the federal government has shown to manage inflation and with a little more forcefulness from the Bank of Mexico, the global inflation containment dam that we suffer from can be consolidated.
containment dam
gasoline
The axis of the contribution has been the tax sacrifice of the collection of the Special Tax on Production and Services (IEPS) on gasoline.
Duty
The removal of tariffs on imports of various food products is something that takes time to land with tangible benefits in the inflationary measurement.
Interest rate
The Bank of Mexico has used its monetary policy with increases in interest rates. This Thursday is the next decision.
Televisa News Anchor
The great Depression
Degree in Communication Sciences from the National Autonomous University of Mexico, with a specialty in finance from the Autonomous Technological Institute of Mexico and a master’s degree in Journalism from the Anahuac University.
His professional career has been dedicated to different media. He is currently a columnist for the newspaper El Economista and news anchor on Televisa. He is the owner of the 2 pm news space on Foro TV.
He is a specialist in economic-financial issues with more than 25 years of experience as a commentator and host on radio and television. He has been part of companies such as Radio Programas de México, where he participated in VIP business radio. He was also part of the management and talent team of Radio Formula.