Mexico | Inflation is a problem. Controlling prices is not the solution
Published on Friday, April 29, 2022
Mexico | Inflation is a problem. Controlling prices is not the solution
Inflation in Mexico during the first half of April reached a level of 7.7% while core inflation also registered a very high 7.2%. Both figures are the highest since January 2001.
Key points
- Key points:
- This is not an idiosyncratic phenomenon: we are seeing high inflation in most countries in the world.
- Inflation in the United States hit 8.5% in March, its highest level since 1981, and the International Monetary Fund (IMF) forecasts global inflation to be 7.4% this year.
- In the case of our country, the high inflation is not due to aggregate demand pressures, but to shocks from abroad, largely associated with the pandemic.
- The high inflation is worrying above all because it affects more the population with lower incomes.
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