On Wednesday February 17th, the National Chamber of Commerce of Merida (CANACOME) reported that so far this year its members increased the price of their products between 10 – 15 percent, which has proved to be an economic impact due to the increases, primarily in the areas of jewelry, gifts and cosmetics.
“Price increases are part of the economic stability, fortunately, it has not impacted on many basic food products, with some exceptions such as meat,” said Juan José Abraham Daguer, president of CANACOME.
The businessman explained that the ups and downs (more ups than downs) of the dollar since the second half of last year, and imported products, are the two main factors in the escalation of prices.
“Companies have been trying to resist and absorb the rising price of the dollar, unfortunately a year has passed, and during this time the dollar went from 13 to 15 pesos, then from 16 to 17 pesos, and now it has reached almost a 20 pesos exchange rate,” he warned.
As reported, from September of 2015, the local private sector announced a gradual increase in the price of some products, services and government sectors, due to the considerable rise in the dollar. Since then, escalating inflation was reflected in the price of bread, beef, pork, medicine, transportation, automotive parts, agricultural products and bottled drinks, according to the business chambers of Yucatan.
Daguer said that importing companies are not responsible for the raise, but those who are producers buy inputs and raw materials in dollars.
He pointed out that logically the national currency loses purchasing power since now fewer products will be purchased for the same cost, so the inflationary spiral is already affecting the people’s economy in Mexico.
Moreover on street vendors, the business leader said it is a complicated issue that the CANACOME maintains its zero tolerance stance about informality.
“The number of street vendors we have in the historic center is at 440 and we have a 1,500 spaces. The authorities claim that in three weeks the figure will drop to 380 vendors.
“This is not to eliminate them, because they are people who have the right to earn a living, but we must see that these merchants work within the framework of the law, therefore, it is proposed to those with an assigned space without use to return it and it will be assigned to someone who does want to work in it, and pay taxes. ” Abraham Daguer concluded.