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News Article

Travel Alerts Against Mexico/Inflation Increases

By Paloma Duran | Wed, 09/07/2022 - 12:15

US issues travel alerts against Mexico. President Andrés Manuel López Obrador criticizes the decision of the US government to recommend not to travel to Mexico. Furthermore, he emphasized that, unlike the US government, he will not ask people to stop traveling despite the growing violence and insecurity in the US. “The announcements that they make in the US embassy about not going to this state of Mexico are in bad taste and seem to have political reasons. There is no violence like they say.”

In recent weeks, the US government has raised the alert level for some Mexican states due to the increase in kidnappings and crime. So far, the states that the US does not recommend to travel are Colima, Guerrero, Michoacan, Sinaloa, Tamaulipas and Zacatecas. López Obrador has accused that US recommendations have political reasons, since the six states are governed by MORENA, the president's party. According to the latest government data, as of July 2022 there have been 18,093 homicides, with an average of 85 per day.

Inflation hits Mexicans. López Obrador said that inflation continues to impact the population, especially because its purchasing power has decreased. The president explained that although salaries are increasing, so are the prices of basic necessities. Consequently, López Obrador assured that his government is preparing an economic plan to mitigate its negative impact. “There has been a decline in purchasing power due to inflation. This must be addressed, because it means losses. It is useless to increase income if prices rise.”

Mexico's inflation forecast for the end of 2022 increased to 8.15 percent and its estimated economic growth was also raised to 1.9 percent, according to a survey of private sector analysts by the Bank of Mexico (Banxico). Analysts warned that the effects of price shocks could last longer than estimated and even worsen. Despite these issues, Victoria Rodríguez Ceja, Governor, Banxico, stated that the Mexican economy will not fall into recession in 2023.

At the end of 1H22, the value of the basic basket was MX$1,530(US$76.13) in rural areas and MX$1,991 (US$99.07) in urban areas, representing an increase of 12 and 12.6 percent respectively compared to the prices in 2021. Experts assured that the main reason for the increase has been inflation, which led the basic baskets to reach its second highest price in the last decade.

AMLO calls on the population to celebrate Mexico's Independence Day. López Obrador called on the population to celebrate and attend the Mexican Independence festivities on September 15 in the Zócalo of Mexico City. In addition, he announced that invitations have been sent to political and social leaders such as former president of Bolivia Evo Morales, former president of Uruguay José Mujica, relatives of the journalist Julián Assange, among others. “We are going to have guests of honor at this celebration. Morales and Mujica have already confirmed it. There is more that are confirming. We are happy to show that we have the support of great leaders.”

The data used in this article was sourced from:  
Gobierno de México, Milenio
Photo by:   Gobierno de México
Paloma Duran Paloma Duran Journalist and Industry Analyst