In the Treasury room of the National Palace, President Andrés Manuel López Obrador considered inflation in Mexico, as in other countries, “it is transitory” and a product of the pandemic.
In the case of North America, he explained that inflation increased because money in circulation in the United States increased.
“The phenomenon of inflation is worldwide, and you only see the tree and not the forest, inflation in Europe was not registered in that dimension on average almost 5% in the last 30 years, to locate ourselves in what is happening, inflation in the United States it is very much at the level that we are suffering in Mexico, 7%, and it is like this throughout the world, in Brazil it is 11%”, he explained.
“Why? The pandemic, as were the productive activities slowed down by the pandemic when the economic recovery begins, there are no raw materials and the prices of food, gas, steel, the price of maritime transport begin to rise, all of this produces inflation,” he argued.
Inflation is transitory: AMLO
The president said that in the case of North America, inflation increased due to “the amount of money that was injected into the United States into its economy to support its citizens, it was a lot of money, a lot of demand and little supply.”
He indicated that the demand for products is high because there are no cars because there are no chips and if you buy a stove or a refrigerator you have to wait up to five months.
“In Europe, for example, the European Bank has decided not to carry out any action because they are thinking that it will be transitory, that to speak of control, that is the analysis of the specialists as we are going to wait, it helps us a lot to have control through competition in the case of gasoline, diesel, electricity and gas, this helps us a lot”, he added.