- CAINTRA recognizes that price pressures are decreasing, however, that the battle to control inflation continues.

- Producers still face inflation, as well as increases in other costs such as wages and financing. wages and financing.

Through this press release, Nuevo Leon's industrialists acknowledge that while inflation continued to ease in 2023, the battle to control price pressures has not yet been won. continued to ease in 2023, the battle to control price pressures is not yet over. is not yet over. This price increase continues to erode the purchasing power of both consumers and producers, further complicating consumers and producers, further complicating the economic outlook for businesses, especially small and medium-sized companies.

After following a downward trajectory from January to October 2023, consumer inflation rebounded in November, December and January. in November, December and January, closing 2023 with an annual inflation of 4.66% and registering an inflation of 4.88% at the start of 2024. 4.66% and registering inflation of 4.88% at the start of 2024. Although lower than in 2022, inflation would have spun about 3 years above the central bank's 3% target.

On the producer side, and after inflation of 8.9% in 2022, producers faced inflation of 1% in 2023 and January 2024. 1% inflation in 2023 and January 2024. However, since the second half of the previous year, producer inflation has reversed its trend. However, since the second half of the previous year, producer inflation has reversed its downward trend, putting pressure on companies' cost structures. cost structure.

Within cost pressures, all sectors generally faced wage adjustments for workers that exceeded inflation and higher financing costs. inflation and higher financing costs. For example, for for example, for financing investment projects and working capital, companies are facing interest rates of around 12% of around 12%, and up to 15% for SMEs.

Faced with these pressures, around 20% of industrialists in Nuevo Leon consider price increases to be an obstacle (Economic Expectations Jan. 24). price increases are an obstacle (Expectativas Económicas Jan, 24). Where it stands out that this percentage increased at the close of 2023, from the 12% observed in October.

In order to maintain cost stability, the industrial sector considers it important to facilitate all processes related to the supply and logistics of inputs. processes related to the supply and logistics of inputs. For example, a fast customs through digitalization; accessibility and safety on highways and roads; and simpler procedures, among other measures. and simpler procedures, among other measures.

By working together, the private sector and the public sector, we can alleviate pressures and bring more social welfare to Mexicans. and bring more social welfare to the Mexican people.

CAINTRA NUEVO LEÓN