| | |  Business News | August 2008 
Mexico Consumer Confidence Hits Record Low in July
 Noel Randewich & Jason Lange - Reuters
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| | Mexico's inflation accelerated to the fastest in almost in four years, driven by higher costs for food and gasoline. | | |
Mexico City - Mexico's consumer confidence index dropped in July to its lowest since it was launched in 2001 as shoppers worried about soaring food prices.
The consumer confidence reading slipped to 88.4 from 90.7 in June, the national statistics agency said this week.
Mexicans were less optimistic about both their current economic situation and future economic conditions, it said.
Mexican inflation is running at a more than three-year high, due mostly to high global food prices.
Inflation across Latin America has jumped in recent months as rapidly developing economies like India and China boost global demand for food commodities, while grains are also diverted to make biofuels.
Higher grain prices have especially hurt the poor because they spend a higher portion of their incomes on food.
Mexicans working in the United States, which is suffering from an economic slowdown, are also sending less money home now than a year ago, the central bank says.
Mexico is feeling the pinch from a slowdown in the United States but is weathering the downturn better than the last time the U.S. economy went south.
(Editing by James Dalgleish) |
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