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The Mexican economy suffers from unleashed inflation and the peso in low hours

Mexico City, Nov 24 (EFE) .- The increase in the interannual inflation rate in Mexico, of which today it was learned that in the first half of November it reached 7.05% and its highest level in 20 years, the situation of the Mexican economy worsens, also affected by the depreciation of the peso and by the unexpected changes in the succession of Banco de México.

The National Institute of Statistics and Geography (Inegi) reported this Wednesday that in the first fortnight of November this indicator rose 0.69% compared to the immediately previous fortnight, bringing the interannual rate to 7.05% .

The same source indicated that, in the same period of 2020, the variations were 0.04% biweekly and 3.43% annually.

“Annual consumer price inflation continued to rise in the first half of November. The general rate reached 7.05% year-on-year, the highest rate recorded since April 2001,” Inegi president Julio A. Santaella said on Twitter. .

Among the products that have rebounded the most annually, the prices of agricultural products stand out with 12.37%, while energy rates have risen by 11.15%.

The indicator is worrying because it far exceeds the 3% annual inflation target established by the Bank of Mexico (Banxico).

However, the president of Mexico, Andrés Manuel López Obrador, wanted to downplay it this Wednesday in his press conference from the National Palace: “It is a global phenomenon, there is a crisis, now it is post-pandemic, which is manifesting itself in all countries. We have an inflation equal to that of the United States. “

In addition, he considered that this rise is due to the increase in raw materials such as food or steel, and assured that his proposal for constitutional reform in the electricity sector seeks, precisely, to avoid the rise in prices.

Despite the relative presidential calm, the situation grips a country with a gross domestic product (GDP) collapse of 8.2% in 2020 and 43.9% of the population living in poverty, according to data from the National Evaluation Council. of the Social Development Policy (Coneval).

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