La inflation, it’s a terrible monster that has been with us for some time now. Particularly important result because our index also shows the velocity in our power acquisition has been eroded, or has seen most of it in its last year.
The problem is most tricky when it comes to the dimensions of time and above all when we compare it with the rhythm in which it grows nuestro ingreso.
What is the inflation rate?
The academic manuals of inflation as a generalized and sustained process in the increase of prices, the reality that tenemos in Mexico is much greater than this definition, just compare the increase in prices between countries during the life of Treaty of Free Trade of North America. While in the 26 years of the agreement in Canada the consumer price increases 52% and in the United States 69%, in Mexico we see an increase of 610% in dicho lapso.
El inflation concept if we have the graphic idea of being an accumulative phenomenon, in other words, that the price of the previous years increases the number of years, here is the classification of inflation and also the perversion of crime rates of crime, that the ingress of good part of the population is not recovered with the same velocity in which the prices are incremented, which is inflated to inflation by an expropriation tax of the ingress.
Since its implementation in 1969, the annual crime in the National Consumer Price Index (INPC) always has been positive, it is said, that during the time that inflation has been rising in the country, it has been rising. In the course of the year, for stationary issues, it is advisable to present retrospectives on the value of the INPC and, above all, on inflation, without embarrassment, are phenomena of a single year and function basically as a factor of mitigation in the price of a good service. for some sector of the population, the most known in the country are the electricity tariffs for the period of verano.
Agreed with the National Institute of Statistics and Geography (INEGI), set up to retrieve information and obtain quincennial and monthly medicine. Loose National Indexes of Prices (INP) its economic indicators that miden the variations of prices over time in the goods and services that are consumed in the highlands, as well as those that are produced in the country.
In agreement with the body, the National Index of Consumer Prices (INPC), a final indicator indicates the evolution of the prices of goods and services consumed by families in Mexico.
Origins and development of the INPC
From 1968 it formally initiated the calculation of INPC Established for the first time at a comparison base, the actual reference base corresponds to the second quintessence of December 2010.
Since the arrangement of its medicine and until June 2011, the National Indexes of Precious Fuels were calculated by the Bank of Mexico, without embarrassment, with the entry into force of the National System of Statistics and Geographic Information on INEGI, the exclusive faculty in the elaboration of this indicator, by which, as of July 15, 2011, the Institute contributes, analyzes, calculates and publishes periodicals and systematically the INPC and INPP indices.
What are the consequences of inflation?
Due to the relevance of the familiar guest to the economic guest of the economy, the INPC’s variations are considered a good approximation of the variations of the prices of the goods and services commercialized in the country, of which the principal uses del INPC is to estimate inflation, intended as the continuous and generalized increase in the prices of goods and services that are spent on an economy.
Enfatiza el INEGI, that it is of particular importance to log a medicine the most precise possible of inflation inflation and that it is an economic phenomenon very nocturnal, debt that:
- Affects the stability of the purchasing power
- Perturba the economic crime, to elevate the risks of investment projects
- Distortion of consumption and time decisions
- Propose an unequal distribution of the entry, and
- Defines the financial intermediation for the effect it has in the interest rates
Given the large number of consumables and products produced in a modern economy, including the variations of prices within it is a complex process, because it implies the need to maintain the most potential of the guests that realize them. Economic agents and national production, because in addition the prices do not change simultaneously, they do not advance all the time to the same speed.
Ante the impossibility of contributing to the totality of the property prices and services which is consumed in the country, the construction of the Indices and its calculations is carried out on the basis of Muslim procedures, which is supported by the fundamental principle of inferential statistics, which method deducts the properties of a population from a small part la misma.
Characteristics of the Consumer Price Index
El INPC has national geographic coverage, the contributions used for this calculation are obtained from 46 urban populations or metropolitan areas of more than 20 miles of habitat, procuring a pattern that includes small, median and large cities; each federal entity is represented at least one city, as the calculation and its division are made quinquently and monthly.
The goods and services of both indexes have weekly, quarterly, monthly and monthly contributions, according to the type of generation that is treated and the specifics that compose it. For example, foods, beverages and tobacco have weekly contributions; restaurants, internet services, books and cars are quoted quincenally; the colleges visit and contribute a month to the month; y, the rent of the house of housing is cotizan semesterly.
How does inflation help?
The calculation process of the National Indexes of Prices can be summarized in stages, the grades are described in the following points:
Information Source Selection: To guarantee the representativeness of the prices used in the index of the indices, in the first instance there is a selection of information sources on the part of the Supervisors in coordination with the Investigators of Prices. These are his selections of specialized directories.
Specification of Specific Products: Elegidos the establishments, Investigators of Prices distributed throughout the country and subsequently reclaim the most specific specific products. The selection of specific products is carried out with the help of the information source.
Capture and send: Once all contributions have been made at the national level, they are concentrated in the central office to carry out the calculation process.
Analysis and critique of information: Concentrates the information on the City of Mexico, the prices that are recovered through an audit process by the Supervisors and, if necessary, verification by the Investigators of Prices. By this procedure, it is guaranteed that the contributions that are used in the calculation are correct.
Calculation of the Indices: Conclusions and approvals of the previous proceedings are carried out in a calculation, for which purpose the method of Laspeyres’ foundations is used.
Revision and validation of the results: Before the results are released, work meetings are held to verify the consistency of the mistakes. The verifications include comparisons with other indications of prices.
Publication: A press release is presented summarizing the behavior of the indexes of prices, published on the Web page and for the case of the INPC published in the Official Diary of the Federation.
Reference-www.eleconomista.com.mx