Why does this happen?
A first precision is that these nations do not enjoy low inflation, quite the contrary.
Esteban Polidura, Director of Consulting and Products for the Americas at Julius Baer, explained that these mature economies are the result of a population that is very different from that of Mexico and where the dynamism of consumption also has a different rhythm.
Japan
Ramsé Gutiérrez Senior Vice President / Co-Director of Investments of Franklin Templeton Mexico, pointed out that Japan had been in a period of deflation (general fall in prices) for nearly 30 years, so the current rate of 2.5% is quite high.
“That is a social problem because they were not used to prices going up,” he said.
“The Japanese government has a situation of very poor and low economic growth… and the way to deal with this environment is, contrary to many economies, not raising rates, by not doing so the currency is severely punished, and that brings with it another series of problems. Japan is a very exporting country and having a very punished currency can be a positive factor”, commented the Julius Baer executive.
China
The specialists consulted highlight that the Asian giant also has certain special characteristics that allow it to have an annual inflation of 2.5%, especially due to the closures in its economy due to the constant outbreaks of COVID.
Pablo López Sarabia, an academic from the Tecnológico de Monterrey, said that China has a growth projection close to 4.4% for this year, when in 2021 its Gross Domestic Product (GDP) rose 8.1%, which reflects that demand has been compressed, and that helps contain the rise in prices.
The doctor in Economics added that China also has a very liquid currency and that it has the capacity to overcome, for the time being, the energy and food shocks that may arise.
Swiss
Gabriela Soni, Chief Investment Officer of UBS Mexico, commented that the 3.4% inflation in the European country is due to factors such as consumers spending less on energy and food, so the corresponding prices have risen less.
“Inflation differentials are due in part to differences in the basket of goods. In the eurozone, spending on energy and food represents around 30% of the basket, while in the Swiss basket it only accounts for around 20%. In Switzerland, more money is spent on health and housing components, which tend to show stable or even decreasing price dynamics compared to the eurozone”, explained the specialist via email to Expansión.
Gabriela Soni added that most of the divergence is due to different price developments. Those in the eurozone, especially food, consumer goods and energy, rose much more than in Switzerland.
“The electricity market for private customers in Switzerland is regulated and prices are set in September by the Federal Electricity Commission for the following year. Therefore, in Switzerland, a strong increase in electricity prices is not quickly reflected,” he added.
Saudi Arabia
Despite having the lowest inflation rate of the countries mentioned, with 2.3% per year in June, prices in that country have been accelerating sharply in recent months, as they rose 0.8% in October.
According to the Trading Economics site, food and transportation are the items that have had the greatest increases, with 4.4% and 2.5%, respectively.
Juan Pablo Sarabia said that this country is a strong producer of oil, which allows it to make adjustments in its finances to try to contain the price pressures that come from abroad.
