Inflation is expected to continue next year as eateries and businesses in general plan to change price tags to items and services
Inflation is expected to continue next year starting January as prices in eateries and businesses are expected to increase due to the higher cost of items and minimum wage, business leaders said.
Mexicali Chamber of Restaurants President Raul Vasquez told La Voz newspaper this year eateries do not expect to increase prices. However, prices will see an update in 2023 with a climb of up to 15 percent.
Mexicali Chamber of Commerce President Lidia Granados told the newspaper prices will go up 20-30 percent.
Vasquez said the increase of the minimum wage will affect prices more than supply cost.
Minimum wage in Mexico border states was increased 20 percent starting in January.
Granados said the increase depends on the type of business.
“Businessmen must produce more and there are only two ways,” Granados told the newspaper. “Whether we produce more with the same people or, if production does not increase we must increase prices.”
According to the Chamber of Commerce president, members seek to increase prices the least in order to avoid impacting customers.
Granados said minimum wage increase is positive for employees, but represents an impact on employers who now must seek options to cover increased costs.
The chamber president said businesses are finding some benefits after the two-year pandemic that now must address the minimum wage increase and inflation.
Granados said the minimum wage will increase in a time when sales drop, except in stores as people must keep eating.
Christmas sales up
Mexicali Chamber of Commerce members have reported a significant increase in Christmas shopping.
Sales went up between 40 and 70 percent, Chamber President Lidia Granados told La Crónica newspaper.
The chamber president said although inflation has led to an increase of item prices local shoppers have shown special interest in purchasing tree lights, gifts, toys and candy.
Granados said services oriented businesses like barber shops and stationeries have also reported an increase in sales above 40 percent.
Even some chamber members have reported the best sales in years.
Granados admitted that item purchase has not been the same compared to last year.
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