Background on Claudia Sheinbaum and the Pausic
Claudia Sheinbaum Pardo, the current President of Mexico City, has been instrumental in implementing policies aimed at maintaining affordability for essential goods. The Pausic, or Paquete Contra la Inflación y la Carestía (Package Against Inflation and Scarcity), is one such initiative. Initiated during Andrés Manuel López Obrador’s administration in May 2022, the Pausic aims to control price increases of basic goods affected by the COVID-19 pandemic.
Evolution of the Pausic
Under Sheinbaum’s administration, the Pausic has been continually updated to address rising inflation rates. The agreement was first signed on May 4, 2022, and expanded on November 12, 2024. The expansion maintained the basic basket’s price at 910 pesos or less for an additional six months, involving 19 producers and 11 retailers.
Current Inflation Situation in Mexico
Mexico’s inflation rate has shown a persistent upward trend for the third consecutive month, according to data released by the National Institute of Statistics and Geography (Inegi) on May 8. The National Consumer Price Index (INPC) reported a 0.33% variation in April compared to March, resulting in an annual inflation rate of 3.93%.
Regional Inflation Variations
Inflation rates varied across Mexican states. Morelos, Aguascalientes, and Sinaloa experienced the highest inflation levels, while Tabasco, Yucatán, and Coahuila faced the most significant deflationary effects.
Recent Pausic Renewal
On the mentioned date, Claudia Sheinbaum and business leaders signed the renewed Pausic. The agreement aims to prevent price increases for 24 essential goods that constitute the basic basket, ensuring affordability for Mexican families.
Key Actions and Ideas
- Participants: The agreement involves collaboration between the federal government, retailers (tiendas de autoservicio), and agricultural producers.
- Objective: The primary goal is to keep the prices of essential goods stable and prevent inflation.
- Previous Versions: The Pausic was initially signed in May 2022 and expanded in November 2024 under Sheinbaum’s administration.
- Current Inflation: Mexico’s inflation rate has been rising steadily, with the INPC reporting a 0.33% increase in April compared to March.
- Regional Variations: Inflation rates differ across Mexican states, with some experiencing higher inflation and others facing deflationary pressures.
Key Questions and Answers
- What is the Pausic? The Paquete Contra la Inflación y la Carestía (Pausic) is an agreement between the Mexican government, retailers, and agricultural producers to control price increases of essential goods.
- Who are the key figures involved? Claudia Sheinbaum Pardo, President of Mexico City, and various business leaders representing retailers and agricultural producers.
- When was the Pausic first implemented? The initial version of the Pausic was signed in May 2022 during Andrés Manuel López Obrador’s administration.
- What is the current inflation situation in Mexico? Mexico’s inflation rate has been rising steadily, with the INPC reporting a 0.33% increase in April compared to March.
- How does inflation vary across Mexican states? Inflation rates differ significantly among Mexican states, with some experiencing higher inflation and others facing deflationary pressures.
