Mexico | Is high inflation explained by market power?

Summary

Despite the gradual normalization of global trade, less expansionary fiscal policies, and efforts by central banks, inflation remains high. We might wonder if this persistence in inflation is a result of large corporations exercising market power.

Key points

• Key points:
• Inflation is unlikely to be explained solely by uncompetitive market structures.
• Neverthless, when companies collude, market power and inflation may go hand in hand.
• We must pay special attention to markets with a few major players, as well as essential sectors such as food and healthcare industries.

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