INEGI reports annual inflation of 6.12%, AMLO says it is temporary and there will be no peso devaluation

“The peso is in very good shape, it has resisted and there will be no devaluation,” López Obrador said.

MEXICO, (October 22, 2021).- After the Inegi announced that annual inflation was at 6.12%, President Andrés Manuel López Obrador pointed out that they are trying not to increase inflation because that affects the popular economy.

He assured that the reported level of inflation had to do with global phenomena such as the reduction in production, which made food and products such as corn and steel more expensive, as well as the transport of goods through ships.

The other factor was that “enough money was released in the United States to reactivate the economy, the economy heated up, there is money in circulation and a lot of demand and more supply is needed,” the president explained.

López Obrador mentioned that the Treasury economists assure that this is temporary, he said that in any case, they will continue to take care that there are no price increases without justification.

With respect to the fact that the electricity subsidy was removed in some states, the Chief Executive denied what was said: “it is not true that there is no electricity subsidy, it was never removed, it continues to support all states.”

“The electricity has not increased in real terms, neither gasoline nor diesel,” he said in more on economic issues.

“The peso is in very good shape, it has resisted and there will be no devaluation, this has never been seen in recent history, we also recovered the jobs that were lost with the pandemic, there are already more workers registered in the IMSS than there were before the pandemic. And the growth forecast of 6% per year is maintained ”, Lopez Obrador concluded.    

Source: Excelsior