Inflation hits the poor hardest despite wage increases, economist warns; rising tortilla prices a concern

Mexico's annual inflation rate hit 4.59% in March, a figure that, while not signaling a sustained upward trend, starkly illustrates the unequal impact of rising prices on different segments of the population. Economist Gerardo Leyva Parra of the Universidad Iberoamericana highlighted that this inflation disproportionately burdens the poorest households. Their cost of living surges more sharply because they allocate a larger portion of their budget to food, a sector that has recently seen significant price hikes. Products like tomatoes and other agricultural goods have been major drivers of this increase. Leyva Parra also raised a critical warning: a potential rise in tortilla prices would have a substantial and immediate impact on the most vulnerable sectors of society. Conversely, price decreases in services such as internet or telephony in March offer little real relief to these households, as many lack access to them in the first place.

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the inflation does not affect all the population equally, since low-income households face a more pronounced increase in the cost of living due to their greater spending on food, a category that has registered recent increases.

While the minimum wage saw a notable 12% increase this year, surpassing the general inflation rate, this benefit is not universally felt. Leyva Parra emphasized that a significant portion of the population operates in the informal economy and does not benefit from this adjustment. This reality exacerbates the loss of purchasing power for this segment, widening the economic gap. The international context adds another layer of concern. The ongoing conflict in the Middle East could further escalate oil prices, leading to increased costs for transportation, production, and ultimately, food. If this situation intensifies, the global economic outlook could involve higher inflation and a slowdown in economic growth, further complicating Mexico's economic challenges.

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a potential increase in the tortilla would have a significant impact on the poorest sectors.

Leyva Parra noted that core inflation remains relatively stable, hovering around 4%. This suggests that the current inflationary pressures are primarily linked to volatile factors such as agricultural products and fuel prices, rather than deeply embedded systemic issues. Although the current inflation rate is a cause for concern, it may not be a permanent condition. However, its most significant effect, as highlighted by Leyva Parra, is the deepening of social inequalities. The rising costs hit hardest those who can least afford it, underscoring the persistent economic disparities within Mexico. From the perspective of El Universal, these findings underscore the need for targeted policies that address the specific vulnerabilities of low-income households and the informal sector, ensuring that economic gains are more equitably distributed.

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a significant part of the population in informality does not benefit from this adjustment, which aggravates the loss of purchasing power in that segment.