They warn of rising prices in taverns and restaurants

Mexico City.- General inflation in Mexico saw an improvement last February, but the rate of services – especially in lunch shops and restaurants – shows signs of concern that could affect the former, said Casa de Bolsa of Economic Analysis at Finmex. Director Jessica Roldan warned.

“I am most concerned about those associated with outdoor dining, i.e. loncherias, fondas, torterias and taquerias, as well as restaurants.

“Of the 299 generics, those two are heavily weighted (breakfast shops and restaurants) and they worry me a lot because the improvement we saw has reversed and I think that’s part of what we’re seeing. That’s related to the fact that demand has been relatively strong and also for cost-effectiveness purposes, which may be associated with an increase in the minimum wage,” he explained.

In the second half of February, the inflation rate at loncherias, fondas, torterias and taquerias increased to 7.70 percent, while the inflation rate at restaurants and similar was 6.61 percent.

Roldan warned that if these rates remain high in March, it could lead to changes in the general inflation forecast.

“There will be some elements to worry about and that will force us to adjust the trajectory we have for the year,” he assured.

The board pointed out that the headline inflation figure for February – 4.40 per cent year-on-year – is positive, but should be taken with caution as part of its behavior is due to products whose prices are more volatile (such as agricultural and livestock products).