10 | DIC | 2019
MXN $200 can buy only half the products as 10 years ago
Inflation has reduced the worth of Mexican currency – Photo: File photo/EL UNIVERSAL

MXN $200 can buy only half the products as 10 years ago

05/09/2019
17:20
Tláloc Puga
Mexico City
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Nowadays, MXN $200 are equivalent to MXN $106 of 2009 due to cumulative inflation

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The MXN $200 banknote changed a couple of days ago, but only of image, because in real life, with this piece of paper, Mexicans can only pay for half of the products and services they could 10 years ago because of cumulative inflation since then.

This bill has lost 47% of its purchasing power from July 2009 until now, according to the inflation measured by the National Index of Consumer Prices of the National Institute of Statistics and Geography (Inegi).

It means that today, MXN $200 are equivalent to MXN $106 of a decade ago.

Inflation has reduced the worth of all Mexican currency.

This phenomenon is evident in the price of the food that fulfills the basic needs of a home.
 

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In July 2009, a family that lived in the urban area of the country could buy the next foods:

  • 1 kg of tortillas for MXN $10
  • 1 kg of soup noodles for MXN $23.40
  • 1 kg of beefsteak for MXN $70.60
  • I l of cow milk for MXN $11.40
  • 1 l of vegetable oil MXN $20.40
  • 1 kg of onions for MXN $10.40
  • 1 kg of peppers for MXN $25
  • 1 kg of lemons for MXN $8.10
  • 1 kg of sugar for MXN $12.60
  • 1 l of cola soda for MXN $8.30

 

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Now, in July 2019, the same family must spend MXN $370 for the same foods, that is, almost twice as 10 years ago:

  • 1 kg of tortillas for MXN $16.50
  • 1 kg of soup noodles for MXN $34
  • 1 kg of beefsteak for MXN $137.30
  • I l of cow milk for MXN $17.2
  • 1 l of vegetable oil MXN $27.90
  • 1 kg of onions for MXN $34.50
  • 1 kg of peppers for MXN $39.90
  • 1 kg of lemons for MXN $22
  • 1 kg of sugar for MXN $25.30
  • 1 l of cola soda for MXN $14.30

These are average prices of the foods included in the food basket of the National Council for Evaluation of Social Development Policy (Coneval).

Inflation of food prices affects poor homes the most, mainly those of seniors because they have to spend a larger amount of their income in food than the general population.

High food prices reduce the real income of the most vulnerable population, a situation that has serious consequences in matters of nutrition and health, according to the World Bank.

For 25 years, the Constitution has established that the Central Bank of Mexico (Banxico) has as its main duty “to ensure the stable purchasing power of national currency,” that is, price stability or low inflation.
 

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