Mexico could face inflation worries with deregulation and rise in gas prices
Mexico could face inflation worries with deregulation and rise in gas prices
The cost of gasoline in Mexico has spiked since the start of the new year. And people there are protesting about it. That’s because President Enrique Pena Nieto’s administration deregulated the industry. The problem is that the Mexican economy is struggling and the peso is losing value. And, the rise in gas costs could also lead to inflation. The price increase comes as Mexico is importing gas in record amounts. Refineries there are operating at 60 percent of capacity. And that gasoline is costing more because the peso is so weak.
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