The plan that was presented last week to face the high levels of inflation will have a significant impact on prices, although it is difficult to estimate exactly how much, said Rodrigo Mariscal, head of the Economic Planning Unit of the Ministry of Finance and Public Credit. (SHCP).
“It is very difficult to give a point estimate of how much it could affect. However, we believe that it will have a significant impact on inflation”, said Rodrigo Mariscal during the SHCP Chair of the UNAM Faculty of Economics, where he emphasized that his comments do not show the institutional position of the government agency.
The official stressed that the package presented by President Andrés Manuel López Obrador will help the pockets of Mexican families, who have had to face strong price increases in recent months.
He recalled that the 24 products presented in the package as a basic basket represent 13% of the inflation calculated by the National Institute of Statistics and Geography (Inegi).
“The measure is primarily to help people with lower incomes. We help people at the bottom of the pyramid,” she noted.
The Package Against Inflation and Famine (Pacic) contains 16 measures to deal with the high levels of inflation that have occurred in recent months. These measures represent an expense of 1.4% of the Gross Domestic Product (GDP), that is, around 404,826 million pesos.
there will be no deficit
Last week, when presenting the Pacic at the National Palace before representatives of the different productive sectors, Rogelio Ramírez de la O, secretary of the Treasury, explained that this support will not be financed with a government deficit, “but rather we have the highest income from the export of crude oil that satisfies the need to cushion the increase in the price of gasoline”.
This Monday, the Inegi will release the consumer and producer inflation data for the month of April. According to a Reuters survey, consumer prices would have accelerated in April to 7.72%, their highest level since January 2001.
Meanwhile, some analysts have not ruled out the possibility that inflation could reach levels of 8% in the coming months, given the still recovering economy – which has increased the demand for certain goods and services – coupled with tensions in Europe with Russia’s invasion of Ukraine.
stance of the parties
Brunette supports agreement
The Morena Parliamentary Group said it fully supported the Pacic. Coordinator Ignacio Mier Velazco maintained that “this package is timely, precise and necessary, especially in a context where, worldwide, the increase in inflation has been a constant due to the economic effects of the pandemic and the situation that It happens after the conflict between Russia and Ukraine”, he explained. (Maritza Perez)
Gap in finances: PAN
The federal government’s anti-inflationary plan would create a gap in public finances that will affect the allocation of resources to states and municipalities in the 2023 Expenditure Budget, warned Marko Cortés Mendoza, national president of the National Action Party. He assured that the plan “is totally insufficient to stop the general increase in prices that affects Mexican families so much. He considered it an illusory measure.” (Roland Ramos)