Mexico’s inflation jumps up again
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‘Rising food prices drove inflation in Mexico to an annualized rate of 4.95% in May, the highest level in nearly 3 1/2 years, according to data released Monday by the nation’s central bank,’ says Marla Dickerson of the Times’ Mexico City bureau.
‘It’s the fourth consecutive monthly increase and a bigger jump than analysts had predicted. The rate now stands well above the nation’s 3% long-range inflation target, and for the last two months, it has hovered in the 4.5%-to-5% upper limit of what the government considers acceptable in the short run.’
‘Mexico’s poor, who dedicate the biggest share of their income to food, are feeling the squeeze most acutely. Inflation for what the government considers the basic basket of staples hit 5.68% in May, as cooking oil, rice, corn tortillas and beans all posted hefty increases.’
Mexican President Felipe Calderon, whose robust public approval ratings have dipped slightly in the last two months, ‘recently boosted cash payments to families enrolled in the nation’s largest anti-poverty program to help them cope with soaring grocery bills.’
‘Calderon has stated that he wants interest rates lowered so that domestic businesses and consumers can keep making purchases to keep the economy rolling.’
Cartoon: Mexican president Felipe Calderon gets the diagnosis. Credit: La Jornada
-- Reed Johnson in Mexico City
