• He said that this is very good news for Mexican families, as the price of the main products and services is hardly rising.
  •  Some prices have even dropped: fixed and mobile telephony, international and domestic long distance (the latter was eliminated), electricity and natural gas, he said.
  •  This is a result of the structural reforms we have achieved together, monetary policy and the responsible management of public finances, he explained.

President Enrique Peña Nieto announced today that, “According to the National Institute of Statistics and Geography (INEGI), in 2015, Mexico achieved the lowest inflation rate on record: 2.13%”.

He added that, “This is very good news for Mexican families: the price of the main products and services is hardly rising.”

He said that this, “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.

President Peña Nieto said that some prices have even fallen: fixed and mobile telephony, international and domestic long distance (the latter was eliminated), electricity and natural gas.

An article signed by the president was published on the President’s Official Website today, the full text of which is given below.

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 registered since it began to be recorded 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 lower purchasing power. Conversely, as happens now, low inflation means that prices for major products and services purchased by Mexican are hardly rising.

To gauge the importance of the good news announced today by the INEGI, it is worth recalling 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 just 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 of 15%, Argentina of over 14% and Brazil of over 10%. In Colombia, inflation is 6.8% and 4.1% in Peru.

“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. This 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.