The Strategist

Inflation in Mexico reaches its highest since early 2001

12/10/2021 - 05:13

According to the National Institute of Statistics and Geography, yearly inflation in Mexico hit 7.37 percent in November. Local newspaper Milenio reports that this is the country's highest consumer price level since January 2001.

In November, Mexico's inflation rate was nearly 2.5 times the central bank's target of 3%. Consumer prices increased by 1.14 percent in November compared to October. Inflation was 3.33 percent during the same period in 2020.

Meat (beef and chicken), power, hotel accommodations, and airfares all saw significant rises in Mexico last month. According to Milenio, the prices of gasoline, avocados, beans, pork, and oranges, as well as telephone, internet, and pay-TV services have all decreased.

Mexico's GDP plummeted by 8.5 percent at the end of 2020 as a result of the coronavirus pandemic, the worst drop since 1931. Last year, the country's inflation rate was 3.15 percent. In December, President Andres Manuel Lopez Obrador declared that Mexico's minimum wage would rise by 22% from 141.7 to 172.8 pesos ($6.7 to $8.2) per day starting in 2022.