- One of the main concerns of Nuevo León's industrialists is high inflation in Mexico, which does not seem to be easing. in Mexico, which does not seem to be easing.

- As a result, the economic outlook for the end of 2022 is compromised.

Currently, one of the main obstacles for Nuevo León's industrialists has been high inflation, which in recent times has not been easing. inflation, which in recent records shows that it is not easing. It is even more worrisome that the economic outlook for the end of the year is compromised in the face of these pressures.

In an analysis of INEGI figures, we observe that in March consumer inflation accelerated, showing an annual rate of 7.451 PPP3T and consumer inflation accelerated, showing an annual rate of 7.451TDP3Q and now 13 months above the central bank's target of 31TDP3Q. the central bank's target of 3%. However, the country's productive sector is also facing steady increases in is also facing steady increases in the purchase of inputs. In March, intermediate goods goods reflected an inflation of 13.39%, where raw materials such as petroleum derivatives, iron and steel products petroleum derivatives, iron and steel products, and aluminum showed an inflation rate of over 30%.

It is important to emphasize that high inflation has been a consequence of the uncertainty, scarcity and disruption of global supply chains, which has brought about the recovery of the global economic crisis. disruption of global supply chains, brought on by the recovery from the COVID-19 crisis and now the war in Europe. crisis and now the war in Europe. Many countries are subject to these inflationary pressures inflationary pressures; for example, the US recorded inflation of 8.56% in March.

Unfortunately, this scenario has led us to once again adjust our inflation forecast upward to 6.49% by the end of 2022. upward, bringing it to 6.49% at the end of 2022. This implies an increase of more than 2 percentage points higher than the December forecast.

However, our main concern is the effect of these problems on the Mexican economy. Although in the first quarter we observed an increase in GDP of 1.6% at an annual rate, it is expected that in the next few months annual rate, little progress is expected in the coming months. In fact, we also we also cut our 2022 GDP forecast to just 1.8% by the end of the year. The This implies that more than 195 billion pesos less will be generated for the welfare of the population. welfare of the population.

Therefore, we call on the authorities to work together to collaborate in order to avoid higher inflation. inflation. This would be achieved with measures such as the following:

- Avoid implementing price control policies. While well-intentioned, they could While they are well-intentioned, they could have major repercussions such as shortages of products and inputs in domestic inputs in domestic production, as has been dictated by historical experience.

- Resorting to mechanisms such as relieving the regulatory burden on companies. For example, through through a lower tax and regulatory burden for the productive sector, in terms of standards, procedures and inspections, and inspections.

It is imperative to stop this price escalation in the short term, which affects not only companies but also Mexican society in general. Mexican society in general. If action is not taken, it will be difficult to achieve greater economic development and social wellbeing. economic development and social welfare.

CAINTRA Nuevo León