Inflation can hamper growth because it reduces consumer purchasing power

The inflation can become an obstacle to economic activity through its impact on the production of companies and by reducing the purchasing power of consumers, explained the Director of Price Analysis, Regional Economy and information from the Bank of Mexico, Alejandrina Salcedo Cisneros.

As evidenced by the responses of businessmen operating in the four regions of the country, raised by the Bank of Mexico, inflation is one of the three main obstacles to your economic activity.

They are particularly concerned about the rising cost of inputs and the extreme risk of scarcity of the same, he observed based on the results of the survey contained in the Report on Regional Economies of the July-September period that he presented.

“The extreme problem is not that they have to pay a higher price, but that they simply do not have access to some of the inputs they use to produce,” he referred to contextualizing the bottlenecks in the production chains that continue to arise before the heterogeneous evolution of Covid-19 pandemic.

In a remote press conference, he stressed that another concern of the businessmen interviewed is that they would have to pass on the costs to consumers. Well, “there may be a decrease in demand due to the higher price of their products or because consumers have less purchasing power.”