Monterrey, NL. At the end of this year, the inflation rate for the state will be at an annual average of 5.6% —from December to December—, and will be higher than that registered in 2020, which was 3.4%, and is mainly due to costs. of energy and food in the basic basket, commented to The Economist Jorge A. Moreno, Professor at the Faculty of Economics of the Autonomous University of Nuevo León (UANL).
At the national level, inflation at the country’s annual rate will be 6.24%, according to data from the Bank of Mexico (Banxico).
“According to information from the Economic Research Center, at the end of the year, the inflation rate for Nuevo León will be at 5.6% annual average, from December to December, higher than the 3.4% that was registered in 2020, and is the product of this partial increase, where accumulated inflation will be shot for the last quarter to 6.63% “, he commented to The Economist Jorge A. Moreno, professor at the UANL Faculty of Economics.
Some of the reasons why inflation soared in New Lion, he explained, “is due to the costs of energy and food, which are part of the basic food basket of Neolonese households and are pushing the inflation at levels, which, as Banxico and the National Institute of Geography and Statistics (Inegi), they refer us to 20 years ago ”.
The effects that are perceived have an impact on the floating line of the purchasing power of families, because inflation is regressive, that is, as a proportion of income, the loss of purchasing power is more pronounced in the income strata bottom, highlighted.
This goes hand in hand, he said, with the fact that household income has not recovered, as shown by the Inegi indicators, where the recovery from the huge drop that was registered in 2020 has been only partial, “We have not even recovered the levels we had before the pandemic,” emphasized the specialist.
According to the National Survey of Household Income and Expenditure (Enigh) 2020, the total average quarterly current income per household without transfers in deciles in Nuevo León, fell -6.8% from 2018 to 2020, going from 65,765 to 61,258. However, the income of 2016 against 2018 decreased -30.58 percent.
Meanwhile, the fall in total quarterly current income, at the national level, was higher than New Lion, between 2018 and 2020, with -8.3%, going from a quarterly current income of 45,228 to 41,439.
Impact on companies
He warned that upward inflationary pressures will translate into greater uncertainty on the part of companies that are interested in investing, since inflation is the way in which the economic system takes the temperature above expectations; when there is a lot of inflation, it does not allow for stable and transparent decision making, he argued.
“It is important to emphasize that an increase in the general minimum wage (which went from 141.70 to 172.87 pesos) does not translate directly and immediately into household income, because the minimum wage is no longer a unit of measurement of people’s income, that changed by law, and the percentage of the population that earns less or a minimum wage is very small ”, he specified.
He concluded that household income and the wages that represent the purchasing power of households are linked to productivity, economic growth, and improvements in the conditions of the economy, “therefore, as long as these conditions do not improve, inflation will continue to decline. the purchasing power of households ”.
Reference-www.eleconomista.com.mx