Inflation, insecurity and COVID – EMPREFINANZAS

The National Alliance of Small Merchants (ANPEC) reports the price variation of the basic food basket of forty-four products from July to August of this year; a market study carried out in the thirty-two states of the Republic with a random sample of domiciled, ambulatory and stratified people in more than 200 points of sale in three levels of consumption: high, medium and popular.

Food inflation continues to rise, with the average price of the Basic Food Basket (CBA) at $1,896.57, a 1.02% increase in price, with an average increase of $19.10. The five states with the most expensive CBA were Nayarit 8.07%, Sinaloa 5.63%, Tabasco 5.53%, Coahuila 5.26%, and Baja California Sur 3.49%. Among the products that have increased the most in the last month are vegetables and citrus fruits, such as tomatoes 15.03%, which went from $32.14 to $36.97; carrots 12.55%, which went from $21.84 to $24.58; onions 11.71%, which went from $27.68 to $30.92; lemon 8.69%, which went from $29.74 to $32.33; can of pickled chili peppers 6.48%, which went from $22.17 to $23.61 and orange 6.20%, which went from $33.31 to $35.38.

“We have repeatedly warned that inflation is the worst tax, as it primarily hits the most vulnerable. We have had five consecutive months with rising inflation and double the target figure set by the Bank of Mexico (BANXICO), which tells us about a hot situation prevailing in the country’s microeconomy, where prices continue to rise and the purchasing power of consumers does not end up reaching them,” said Cuauhtémoc Rivera, president of ANPEC.

The expenses of going back to school, the celebrations of Independence, Halloween, Day of the Dead, now even the Buen Fin and the Guadalupe-Reyes-Candelaria Marathon show us a 100% inflationary perspective for the rest of the year. It can already be concluded that 2024 will be a year with rising inflation, which will not be far from reality, so the next mandate headed by Dr. Claudia Sheinbaum has as one of its main challenges to moderate prices, guarantee the essential consumption of the population and manage to contain the inflationary dragon once and for all. This is an urgent task, yes or yes this battle must be fought and we must emerge victorious as a society in order to achieve a better quality of life for all.

In this context, it has been very striking that BANXICO has decided to reduce the interest rate by half a point, in the opposite direction to the decision of the Federal Reserve of the United States (FED). This is a nebulous decision with consequences yet to be evaluated due to factors such as the external debt with the neighboring country and because it is our main commercial partner, among others. Both countries have an extremely close relationship and we cohabit the same economic situation, that is to say, it is not a capricious action that the financial policy of BANXICO is in tune with that dictated by the FED, so the recent decision of our national bank cannot be explained.

“Another factor that harms our economy and promotes inflation is insecurity. The unfortunate events that occurred in Tamaulipas show that the crime of extortion is still there, a scourge that extends over more than two thirds of the national territory and undermines the entrepreneurial attitude of the population. We have to find public policies that guarantee economic and commercial activity in accordance with the law, with complete security,” Rivera said.

Finally, and without seeking to cause alarm, we cannot ignore the resurgence of COVID-19, in light of which we are all asked to resume the usual health measures to prevent this virus from further undermining our health, making us sick and reducing our productive capacity. We cannot let our guard down, much less declare victory. COVID-19 continues to lurk and do its thing.

#VitaminaCParaTodos #AffordableVegetables

Mauricio Neblina[email protected]