CENTRAL BANK REPORTS ACCUMULATED INFLATION AT ONLY 4.4 PERCENT IN JANUARY-JUNE.The Banco de Mexico (central bank) reported Mexico's accumulated inflation at slightly less than 4.4% during the first six months of the year. At this pace, annual inflation for 2000 will amount to only 9.2%, allowing President Ernesto Zedillo's administration to more than meet its inflation target for the year, said Banco de Mexico chief governor Guillermo Ortiz Guillermo Ortiz Martínez (born July 21, 1948 in Mexico City) is the current governor of the Bank of Mexico, Mexico's central bank. Ortiz Martínez is the son of Gen. Leopoldo Ortiz Sevilla and Graciela Martínez Ostos and received a B.A. Martinez. In its budget proposal for 2000, the Zedillo administration targeted annual inflation for the year at 10% (see SourceMex, 1999-11-17). But Ortiz cautioned that an increase in domestic consumer demand and the behavior of interest rates in the US could place upward pressure on the inflation rate in the second half of the year. Some private forecasters agree that the Zedillo administration will meet its inflation target, but they forecast the annual rate at closer to 9.5%. Grupo Financiero Bital said the consumer price index (Indice Nacional de Precios al Consumidor, INPC INPC ITU National Point Code INPC Internet Non-Profit Center ) for June was 0.59%, slightly higher than the 0.49% rate projected by many private economists. In contrast, the increase for the INPC during May was reported at only 0.37%. The June rise was caused by volatility in the rate of exchange for the Mexican peso, an increase in energy prices, and by higher-than-anticipated costs for some fruits and vegetables, Grupo Bital said. The index for the basket of basic goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. increased by 0.60% during June, about the same rate as the INPC. The consumer-rights organization Asociacion Mexicana de Estudios para la Defensa del Consumidor (AMEDEC AMEDEC Australian Middle East Defence Exporters Council ) reported increases of 10% to 30% for onions, tomatoes, grapefruit grapefruit, pomelo (pŏm`əlō), or pummelo (pum`məlō), citrus fruit (Citrus paradisi) of the family Rutaceae (orange family). , oranges, and other fruits and vegetables during the second half of June. But these were offset by a decline in the price of lemons, melons, and other produce. Even with the slight increase in June, AMEDEC said the price of goods and services so far this year continues below the annual inflation. The accumulated rate for the basket of basic goods and services was 3.6% in January-June, compared with the accumulated inflation rate of 4.4%. (Sources: Excelsior, Reforma, 06/09/00; Notimex, 07/03/00, 07/09/00; Novedades, 07/06/00, 07/10/00; El Economista El Economista is a Mexican Business and Economics Newspaper. It was founded in 1989. Publishing: from Monday to Friday in five columns. One of the most commented features of this newspaper is the fact of its printing paper a strange tone of pink-orange. , 06/09/00, 07/07/00, 07/10/00; El Universal, 06/09/00, 07/19/00; El Financiero, La Jornada La Jornada is one of Mexico City's leading daily newspapers. It was established in 1984 by Carlos Payán Velver. The current editor (directora general) is Carmen Lira Saade. , 07/19/00) |
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