The Mexican president, Andrés Manuel López Obrador, affirmed this Friday that the persistent rise in inflation “it is not to be alarmed” despite two consecutive months of increases in the rate, which is above its peers in America.
“We already think that it is going to drop more, we are not going to stop facing the inflationary problem, it worries us and occupies us, but it is not to be alarmed”, he assured in his daily press conference, now from the state of Jalisco.
His statements come after the general inflation rate in Mexico reached 7.91% last January, up from 7.82% in December, the highest level for a year-end so far this century.
“Yes, I think that this is the last increase (inflation) which, by the way, was not much higher than expected, it did not even reach a point”, commented López Obrador in this regard.
The president also referred to the fact that this Thursday the Bank of Mexico (Banxico) surprisingly increased the interest rate to a record 11% due to the rise of 50 basis points, disengaging from the same rhythm as the United States Federal Reserve. United States (Fed).
The Mexican president said “respect their point of view, what they are carrying out”.
But he insisted that the central bank should drop the model.”orthodox” in which, if inflation rises, the interbank interest rate rises, and to think about the economic growth of the country.
“I would like Banxico not only to deal with inflation control, but also to think about economic growth because that formula that if there is an increase in inflation, rates rise, which is what is applied worldwide, because it is what orthodox”, he commented.
He said that other actions would have to be thought of, such as what his government is doing.to support productive activity, not to increase the prices of gasoline, diesel, gas, electricity”.
But he criticized that this type of initiative “they don’t, they don’t recommend it” in the Bank of Mexico or in other central banks in the world.
According to the most recent Citibanamex survey of private sector experts, analysts project by consensus that the interest rate will close the year at 10.5%, while they expected general inflation to fall to 5.13% at the end of the year. .
Source: EFE
Source: Gestion
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