Good End drove the price increase in CDMX

During December 2021, it was observed that inflation in Mexico City presented an almost generalized rebound effect, largely driven by the dissipation of the Good End offers and promotions.

This Tuesday, the financial group Ve por Más (BX +) published the report on the alternative inflation indicator for the country’s capital, where it pointed out that during the last month of 2021 there was an increase in prices in most of the 13 components that are evaluated (these are Supermarket; Food and beverages outside the home; Transportation; Home maintenance; Personal services; Medications; Education; Housing; Telephony; Clothing, footwear and accessories; Household items; Recreation and Culture; Procedures and other services of the government).

Among the components that were affected by the price increase, Household items stand out, as well as the Clothing, footwear and accessories section, as well as Recreation and Culture (such as electronics, toys).

“In the Supermarket component, a rebound was also observed after the Good End in some products, especially in home cleaning and personal care. For their part, food prices continue to rise, reflecting the effects of high production and distribution costs. The monthly variations in pear, lemon, poblano pepper, apple, box bread, beef and beer stood out ”, he deepened.

BX + pointed out that within the Housing component there was an increase in rents, possibly due to the improvement in employment; at the same time, the decline in domestic gas prices was eclipsed.

In addition, the seasonality associated with the Christmas holidays and the end of the year put upward pressure on the prices of tourist packages and foreign transport.

“We also detected increases in Food outside the home, which includes restaurants and cafes, which reflected a higher demand typical of the end of the year, as well as the low level of infections during a good part of the month,” he deepened.

According to the CDMX BX + inflation indicator, in December the monthly variation amounted to 2.26%, compared to a fall in prices of 0.17% in November.

Projection

BX + projected that inflation will decelerate throughout 2022, this as some of the obstructions in the production and supply of various goods are diluted.

“However, this could be compromised by the global rise in infections, with the Omicron virus strain. Additionally, volatility in the exchange rate and the increase in the minimum wage are other risk factors ”, he reported.



Reference-www.eleconomista.com.mx

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