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MEXICAN President Andrés Manuel López Obrador predicted this Monday that annual inflation in the country (which currently stands at 8.2%) will exceed that of the United States at 8.5% by the end of the year, mainly because the Biden administration is contracting debt to control the escalation of prices.
“It is likely that from now on (…) we will stay a little above inflation in the United States, but this remains to be seen since we are applying policies that are working for us”, the President pointed out during his morning press conference at the National Palace.
López Obrador stressed that his government is not resorting for foreign credits, and he is also trusted that the anti-inflationary measures he has implemented will have benefits and that the products of the basic basket will not increase in price.
For this, he said, this week he will meet with his economic cabinet and, probably, the measures will be reinforced.
His statements come after the Bank of Mexico last week raised its general inflation forecast to 8.1% for the last quarter of the year, from a previous estimate of 6.4%.
The central bank expects annual headline inflation to reach its “peak” in the third quarter of this year, when it would average 8.5%, almost the triple Banxico’s target of 3%, and then drop in the remainder of 2022 and throughout 2023.