The most expensive products
Annual producer inflation in February was pushed up mainly by mining, which includes oil, with an increase of 33.29%, followed by the manufacture of products derived from crude oil and coal (24.91%) compared to the same month of 2021, according to Inegi figures.
The expectations are that producers will continue to suffer significant price increases at least for the remainder of the year.
The conflict in Eastern Europe came to add to the global inflationary process and the expectation of what the central banks will do to contain this rise in prices.
“Russia is a crucial player in the hydrocarbon market, both in oil and natural gas,” said Víctor Gómez Ayala, professor of economics at the Autonomous Technological Institute of Mexico (ITAM).
“Ukraine too, especially for some cereals. There are no restrictions here, but the population is unable to produce what they normally sell to other countries,” added Quiroz Zamora.
Russia is also a major producer of energy and raw materials such as aluminum and palladium, while Ukraine produces fertilizers.
To this we must add that Russia cannot participate in the SWIFT international payment platform, so companies from all over the world see an additional complication to make purchases, added the specialist.
The Bank of Mexico (Banxico) said last week that due to the armed conflict, the Mexican industrial sector may face an increase in the cost of inputs.
