The increase in prices is unequal in the different regions of the country, so the government’s plan to combat inflation could be inefficient, according to the organization Mexico How Are We Going?
“Mexico is a very diverse country in its social and economic dynamics and, therefore, neither working poverty, nor the recovery of the labor market, nor economic growth, nor even the general rise in prices behaves the same in all federal entities”, highlighted the organization.
In the first half of April, consumer inflation accelerated to 7.72% annually, the highest on record in 21 years.
However, 25 entities exceeded this national average. For example, Campeche was the state that showed the greatest increase in its prices in the first half of April, with a rate of 9.8%, while Oaxaca 9.0%, followed by Michoacán, with 8.9% and Zacatecas, with a rate of 8.8 percent.
At the other extreme, only six entities managed to be below the national average, although at levels above the Banco de México target range of 3% +/-1 percentage point, while Sonora had an inflation rate of 7.2 percent.
“It is extremely important to consider that a unified price for the basket of basic necessities can dislocate the effort to make this basket more affordable for more families because transporting products and people throughout the country does not cost the same,” said the organization.
Likewise, he pointed out that if a price control falls, the impact that the pandemic has had on the survival of companies, especially MSMEs, which are often the ones that sell these products, must be considered.