Social programs help fight inflation: AMLO

President Andres Manuel Lopez Obrador pointed out that the social programs implemented during his administration are helping to combat the inflation because they increase the purchasing power of those who have less.

During his usual morning press conference he commented that such programs, such as Youth Building the Futurehelp people not to be so affected by rising prices.

“It is something that past neoliberal governments did not do (…) On the contrary, they did not allow the increase in minimum wages,” AMLO commented.

He added that another important point for containing inflation is the arrival of remittances, since Mexican families receive additional income that combats the fall in purchasing power of Mexicans.

“All this has improved the economic situation of the poorest people in the country,” López Obrador said.

AMLO says he will strengthen plan against inflation

The president informed that he will reinforce the plan against inflation for which he will meet this week with his economic cabinet.

Last week, the Bank of Mexico raised its forecasts for 2022 inflation, warning that the effects of shocks on prices could be prolonged and even worsen. Thus, it raised that of general inflation to 8.1% for the fourth quarter of 2022 and that of core inflation to 7.6%, from 6.4% and 5.9% respectively.

At the beginning of August, the monetary authority increased its reference rate for the tenth consecutive time to a historical maximum of 8.5%, in a new attempt to cool down inflation, which has reached a maximum of more than 20 years, touching 8.15% at the interannual rate. in July.

(With information from Reuters)