Mexican President confident of inflation control measures

Mexico City, July 23 (IANS) Mexican President Andres Manuel Lopez Obrador said that he was confident inflation control measures taken by his administration will slow down price rises in the country.

"We are helping to control inflation," Xinhua news agency quoted Lopez Obrador as saying at a press conference.

"While it's no consolation, inflation in Mexico is lower than that of the United States and Europe due to what we have done and will continue to do," he added.

Inflation in Mexico accelerated to 8.16 per cent year on year up to mid-July, its highest level since January 2001, according to information released by the country's National Institute of Statistics and Geography.

The government's main inflation strategy has been to contain the rise in prices by subsidizing fuel prices and capping the cost of certain foods.

The strategy has kept Mexico from becoming "completely overwhelmed" by inflation, said the president, predicting a possible drop in the price index worldwide by October or November.

In 2021, Mexico saw an annual inflation of 7.36 per cent, its highest level in more than two decades, due to the impact of the Covid-19 pandemic.

The Central Bank of Mexico has raised the benchmark interest rate nine times in a row in recent months to its current level of 7.75 per cent, to contain growing inflation.