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What are the products that accelerated inflation in Mexico during the first half of May

The lemon and onion went down. (Photo: Cuartoscuro)
The lemon and onion went down. (Photo: Cuartoscuro)

Chayote, tomato, orange, among other basic products for feeding the population, they showed the highest prices during the fifth month of the year, which caused the rise in inflation, which, according to the National Institute of Statistics and Geography (Inegi), rose to 0.30 % during the first fortnight of May.

This is its first rise in 17 years, compared to the same period of the previous year, since the last time something similar was reflected, it was during the first fortnight of May 2002, when there was an increase of 0.27%.

The rise in inflation is due to the increase in food prices of the basic basketMainly, in addition to the fact that the recovery of oil at the international level, caused the increase in the price of gasoline, which led to the modification of the inflation.

According to him Inegi, beer had a price increase in the fortnight of 3.73% and its incidence in the shortage was 0.051 percentage points.

What are the products with the highest price?

The National Institute of Statistics and Geography also detailed that the main products that increased their prices the most were:

The tomato with a rise of 36.18%; beer, with 3.73%; serrano pepper 19.42%; chayote, 50.31%; air transport, 14.19% and orange 13.21%.

While the products that revealed a Low costs were: electricity 21.28%; the 6.85% egg; chicken 2.54%; lemon 10.11%; onion 4.34%; 2.02% men's shoes, among others.

The unexpected increases will be recorded in the figures for Mexico, since it is the highest inflation for the first half of May since 1998.

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Tomatoes, chile, chayote, among other products rose in the first fortnight of May. (Photo: Cuartoscuro)
Tomatoes, chile, chayote, among other products rose in the first fortnight of May. (Photo: Cuartoscuro)

Country economy

According to specialists from the private sector, a 7.27% drop in Mexico's gross domestic product (GDP) is expected during this 2020, after the economic crisis caused by the COVID-19 pandemic, as revealed by a monthly survey by Banco de México in early May.

According to the survey, specialists from the private sector predicted a decrease in the economy of 3.99% for this year, so the downward revision is very significant.

However, in the study carried out in April, specialists from the private sector revised upward the expectations for economic growth for 2021, from the 1.88% forecast in the last survey to the 2.52% that they forecast now.

The country's economy has been affected during the coronavirus pandemic. (Photo: Cuartoscuro)
The country's economy has been affected during the coronavirus pandemic. (Photo: Cuartoscuro)

In addition, the survey applied from April 23 to 29 among 38 economic analysis and consulting groups from the national and foreign private sector, the general inflation expectations for the end of 2020 decreased in relation to the March survey.

For the end of this year, headline inflation is expected to stand at 2.83%, compared to 3.75% estimated a month ago. While for 2021, the expectation is 3.51%, a figure also lower than the 3.61% predicted in the previous study.

Expectations about the level of the exchange rate of the peso against the US dollar for the end of 2020 they continue to rise after the drift that the peso has taken in the wake of the coronavirus crisis.

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While the private sector predicted in March that the Mexican currency would close 2020 trading at 22.27 units per dollar, they now believe it will close at 23.36 units per dollar.

And in 2021, it will be at 23.03 units per dollar, a figure much higher than the 21.96 units per dollar forecast in the previous study.

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Sam Conley is new to online journalism but she is keen to learn. She is an MBA from a reputed university. She brings together relevant news pieces from various industries. She loves to share quick news updates. She is always in search of interesting news so that she can share them as well to Sunriseread's readers who could enjoy them with their morning coffee.

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