Mexico could face inflation worries with deregulation and rise in gas prices

Andy Uhler Jan 5, 2017
HTML EMBED:
COPY

Mexico could face inflation worries with deregulation and rise in gas prices

Andy Uhler Jan 5, 2017
HTML EMBED:
COPY

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. 

Click the above audio player to hear the full story.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.