By: Enrique Peña Nieto

Today, the National Institute of Statistics and Geography (INEGI) announced excellent news for Mexican families: at the close of 2015, the inflation rate was only 2.13%. This is the lowest inflation rate on record since it began to be measured 45 years ago.

Inflation directly affects families’ well-being, as it measures the change in prices of a basket of goods and services representative of Mexican household consumption. In other words, high inflation means that prices are rising significantly and, therefore, families’ incomes have less purchasing power. Conversely, as is happening now, low inflation means that prices for major products and services purchased by Mexican practically are not increasing.

To gauge the importance of the good news today announced today by the INEGI, it is worth remembering what inflation was like in the past in Mexico. For example, three decades ago, in 1987, the annual inflation rate was 159.2%. This means that within a single year, the cost of living virtually tripled. If we look back 20 years, inflation reached 52% in 1995. And just a few years ago, in 2008, inflation was 6.5%: three times the current inflation rate of barely 2.13%.

Another way to appreciate the price stability in Mexico today is by making an international comparison. According to the latest available data, Venezuela, for example, has an inflation rate of 190%, Russia of15%, Argentina of over 14% and Brazil of 10%. Colombia has an inflation rate of 6.8% and Peru of 4.1%.

In the case of Mexico, the low inflation reported today by the INEGI reflects the success of the monetary policy independently defined by the Bank of Mexico and the responsible management of public finances. It is also a result of the new economic conditions of greater competition and lower rates, resulting from the structural reforms we have achieved together.

Indeed, from December 2014 to December 2015, as a result of Telecommunications Reform, the cost of fixed telephony fell by 4.2%; the cost of mobile telephony decreased by 16.8%; international long distance charges were reduced by 40.7%, while national long distance charges dropped by 100% since they were eliminated. As a result of the Energy and Fiscal reforms, the cost of electricity calculated by the INEGI fell by 3.7%, while the price of natural gas consumed in households decreased by 10.9%.

In short, this historically low inflation, which the INEGI has just announced, is the result of the macroeconomic stability our country has been consolidating for two decades, and the structural reforms of the past three years, whose effects are already being positively reflected in the economy of Mexican families.