It seems that finally health crisis caused by Covid-19 in Mexico and the world is beginning to give way, deaths related to the virus have been significantly reduced and people feel some relief. But the post pandemic recovery It has not been as fast or as effective: international conflicts, shortages of raw materials, sanctions on global trade, unprecedented waves of violence and, of course, the generalized and globalized increase in prices have intersected in the middle.
The inflation It is among the main concerns of Mexicans, especially those who make up the population with the lowest incomes. And of course, because in deciles I and II are the people who allocate more than half of the money they have only to eat and it is precisely food that is becoming more expensive.
The mexican homes they are moderating their economic expectations and inflation is one of the main triggers. During March 2022, the indicator that evaluates the opinion of consumers regarding the price level stood at 15.2 points, a level significantly lower than the base threshold of 50 points.
In addition, with this result there are already seven months in a row with year-on-year falls in the level of confidence of Mexican homes in terms of inflation.
These figures reflect just a little of the realities that are experienced daily: the kilo of tortillas It is sold for up to 24 pesos, a kilo of avocado It already reaches 100 pesos in some areas of the country -almost the same as a kilo of ground beef without a brand-.
The onion, tomato and chili reach 16, 20 and 28 pesos per kilo, respectively, according to the SNIIM records of the Ministry of Economy.
These generics are fundamental components of the basic basket in Mexico, which, in fact, registers a higher price increase than the general INPC.
According to the income poverty and extreme poverty lines calculated by the Coneval (National Council for the Evaluation of Social Development Policies), as of March 2022, these are the minimum amounts necessary to pay the food basket and the general basket:
Just to eat you need:
- In rural regions: 1,518 pesos per month per person
- In urban regions: 1,975 pesos per month per person
To eat, bathe, cook, go to work and live you need:
- In rural regions: 2,870 pesos per month per person
- In urban regions: 4.4043 pesos per month per person
The accelerated trend in inflation rates it is not a problem that Mexico faces in isolation; the rest of the world is seeing prices rise across the board. Economic organizations and financial institutions project that this trend could last for the remainder of 2022, all of 2023, and even into 2024.