Inflation decreases projection of growth in trade in Querétaro

Queretaro, Qro. The behavior of inflation could wear down the growth projections of local trade, if it continues to rise, warned the Querétaro delegation of the National Chamber of Commerce in Small (Canacope).

If this trend continues, it is expected that even the local sector will decrease, said the president of Canacope in the state, Sergio Martínez de León; he added that this year the growth projection is 2.5% for the sector he represents.

The businessman acknowledged that there is concern in this productive branch, because, parallel to the inflationary impact, the purchasing power of the population deteriorates.

Some food products, he said, have reached increases of up to 20 or 30% in their prices this year.

This context has caused the growth of the local sector, he added, to remain on a kind of plateau at least in this second quarter of the year.

“With these market conditions, we are going to lower sales and not only that, but the growth that can reach zero or decrease in trade. (…) If we continue with these high levels of inflation, the purchasing power of the people is going to have an impact”, he highlighted.

With these conditions, it is difficult for the sector to achieve significant growth at the end of the second quarter of the year.

“This has diminished, we have not been able to achieve in this second quarter of the year, we thought that we were going to have growth, even if it is little, but constant; however, we are on a plateau, we maintain the margins of the first quarter of the year”, he pointed out.

If inflation drops at least 1.5 points in the third quarter of the year, he explained, businesses could weigh it, because they are currently sacrificing profits in order not to apply steep increases that further degrade consumption.

The local leader of Canacope added that inflation has also impacted products of the basic basket, including the price of tortillas, vegetables and chicken, with double-digit increases.

Until May, the entity reports an annual inflation of 6.41%, higher than that of a year ago when it was 5.87%, according to the Inegi.

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