Financial Reform’s Scope and Limits

MEXICO - Report 29 Jan 2014 by Mauricio González and Ernesto Cervera
Executive Summary Last week’s inflation report showed that consumer prices rose 0.68% during the first half of January, the sharpest increase for that two-week period in four years. That result pushed the National Consumer Price Index’s 12- month rate of inflation to 4.63%, the highest level since an identical rate was posted in May 2013. A major source of upside pressures came from the implementation of new taxes on junk food, sugary soft drinks, and pet foods, measures that were approved last year as part of the fiscal reform and budget process. Additional upward pressure came from the co...

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