Mexico | The increase in inflation is temporary

Summary

Inflation is increasing due to transitory factors. This means that the inflation in April of this year is the result of comparing the current price level against that observed in April 2020, which was the month when the strictest confinement due to the pandemic in the world was experienced

Key points

• Key points:
• The United States economy, although it is recovering at accelerated rates, still shows significant levels of slack, particularly in the labor market where the unemployment rate, although it has been falling, stands at 6.1%, well above the 3.5% that has been registered before the pandemic crisis
• It is true that the fiscal expansion proposed by the Biden administration is very powerful, but it will be financed with debt placed at very low rates and with increases in corporate taxes
• If implemented, the infrastructure plan will result in increases in the potential growth rate that would decrease the possibility of seeing episodes of overheating in the economy

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