Due to the fact that high inflation rates continue to be registered and these are affecting the dynamics of the different economic units, the Private initiative mexiquense indicated that a strategy focused on the local level should be developed.
The president of the Council of Chambers and Business Associations of the State of Mexico (concaem), Gilberto Sauza Martínez, considered that it is necessary to carry out an in-depth analysis to implement long-term measures (such as economic support and tax incentives).
He deepened that the current inflationary situation is already affecting entrepreneurship models, the operation of small and medium-sized companies, as well as the income and employment of the population.
“Entrepreneurs and small economic units have been, without a doubt, decisive for the recovery of jobs and reactivating the economy. Many of the operations in the country move thanks to these people, brave people who generate employment and wealth every day and the
which cannot be left unprotected”, said Sauza Martínez.
He explained that another factor that could affect is the eventual national decision to control the inflation rate for food.
“It is essential to analyze this type of measure very well (…) Prices are, in reality, an artificial measure that seeks to hide the real inflation rates and that despite the fact that in the immediate moment it might seem that it generates a benefit to the population, the increases would accumulate, generating a significant imbalance in the economy,” he said.
According to the National Institute of Statistics and Geography (inegi), more than 96% of economic units in the Mexico state they are small and micro economic units; which also means that more than 637,000 micro economic units generate between one and up to five jobs for the population.
The highest inflation rates were recorded during the first half of March, when it reached 7.29 percent.
The products that at the moment have had the greatest increase since the beginning of the war crisis between Ukraine and Russia are: domestic gas with an increase of 24.53%; gasoline with 12.82%; and in foods, the lemon that has had increases of more than 166% in its annual pressure and the onion with 112.11 percent.
Agribusiness, most affected
The president of the Business Coordinating Council of the State of Mexico, Laura González Hernández, reported that one of the sectors that could be most affected by the high inflation rates would be agribusiness sector.
He explained that there has been an increase in fertilizer prices from one year to date, which has caused several agricultural products to also increase their cost (such as avocado, lemon and chili).
For example, the increase in fertilizer costs was 55% in March of last year compared to the same month in 2022.
“The repercussions will continue and government intervention and support are required to mitigate the blow,” he said.
He stressed that a meeting has already been held with the head of the Secretary of the Field in the State of Mexico, Leticia Mejía; where the official stated that support for the sector is already valued.
“They are aware of the need and the procedures are already being carried out before the Ministry of Finance,” he deepened.
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