Inflation rates & inequality in Mexico

The COVID-19 pandemic has affected all aspects of life, but especially the economy

Inflation rates & inequality in Mexico
Amid the pandemic, thousands of Mexicans have lost their jobs - Photo: Claudio Cruz/AFP
English 28/09/2020 08:53 Mexico City Editorial Actualizada 09:01

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The COVID-19 pandemic could change many aspects of everyday life in Mexico; however, the economic sector won’t be the same for all: although some will have to adjust to the new normal, other sectors will experience changes in their lifestyle. 

For over 50 million people living in poverty, this pandemic will halt their possibilities of having a better life. At the moment, the current conditions limit people more and more. How can children study at home if they don’t have a television or a computer? How can they use new technology if they do not have access to broadband internet? The United Nations Development Programme warned that around 1.4 million Mexican students are at risk of dropping out of school during the 2020-2021 school year.

Furthermore, it was revealed that between March and August, the country registered one of the highest inflation rates in the continent. During this period, the inflation rate has reached 0.91%, while it reached 0.57% in 2019. Only five countries have higher inflation rates than Mexico: Venezuela, Suriname, Argentina, Uruguay, and Peru. The rest of the countries in the hemisphere have a lower inflation rate than Mexico. Moreover, Mexico’s inflation rate is four times higher than Brazil’s, and twice as higher than in the United States and Chile. In Colombia, the inflation rate reached 0.02%; meanwhile, Canada registered a 0.29% deflation.

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Price hikes always impact those who have less because they have to allocate more resources to purchase food. In Mexico, the COVID-19 pandemic deepened inequality. Those who stayed at home were the ones who could work from home or those who could buy their groceries online. 

In contrast, another sector had to leave the safety of their homes to make a living. If they contracted the virus, they likely went to a public hospital where they were told to stay at home and pay attention to their symptoms. For a patient to be admitted to a public hospital, they must register respiratory problems, although this means the disease is worsening. 

How was Mexico helped construction workers, domestic workers, and small business owners? There is a large sector whose economy has been widely affected by the pandemic. There will be inequality in Mexico for a long time. 

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