Inflation rate declines to 3.84% on drop in prices of agricultural products

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July 24, 2019

Inflation dropped to its lowest level in 2 1/2 years in the first half of July on the back of a moderate rise to consumer prices since the end of June.

The national statistics institute Inegi said today that the consumer price index (INPC) rose 0.27% in the first half of the month, bringing the annual inflation rate down to 3.84% from 3.95% at the end of June.

The rate, the lowest since December 2016, is within the range targeted by the Bank of México, which aims for inflation of 3% give or take a percentage point.

A reduction in prices in a range of agricultural products helped keep the INPC down in the first half of July.

The price of grapes fell 19%, chayotes were 13% cheaper, the cost of tomatoes declined almost 6% and the value of eggs was 1% lower.

Hand creams, toys and board games, women’s t-shirts and blouses and LP gas were also cheaper in the first half of this month compared to the second half of June, although prices for none of those products fell by more than 2%.

Regular gasoline, which influences the prices of many other products, increased 0.47% during the first two weeks of July.

Oaxaca and Tabasco, where consumer prices rose by 0.68% and 0.57% respectively, recorded the biggest INPC increases in the country.

Aguascalientes, Nuevo León and Colima also saw prices rise by around double the national average of 0.27%.

With the annual inflation rate moving towards the central bank’s target and a slowdown of the economy, expectations are growing that the Bank of México will begin lowering interest rates from their current 10-year high of 8.25%.

A majority of banks polled by Citibanamex this week said they expect a cut in the first week of September.

However, even with lower inflation and an interest rate reduction, there is still skepticism that economic growth will improve.

“Price stability should be the consequence of economic growth” not the other way around, Eufemia Basilio Morales of the National Autonomous University’s Economic Research Institute told the newspaper El Economista.

The government shouldn’t think that the stabilization of prices will lead to economic expansion, she said.

Héctor Magaña Rodríguez, head of the Economic and Business Research Center at Tec. de Monterrey, said that an interest rate cut “could still not be enough to cause a significant reduction in the cost of credit,” both for consumers and business.

The stabilization of prices is a good sign but at least in the short term it will be insufficient to influence general economic behavior, he said.

The economist explained there are other internal and external issues that must be addressed in order to remedy the slowing economy.

The International Monetary Fund (IMF) cut its 2019 growth forecast for the Mexican economy to 0.9% from 1.6% yesterday, citing weak investment and slowing private consumption as a result of “policy uncertainty, weakening confidence and rising borrowing costs.”

However, President López Obrador said he still expects 2% growth this year, declaring that he doesn’t have a lot of confidence in organizations such as the IMF.

Source: El Economista (sp)

Michoacán security chief killed in helicopter crash

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Madison Koen

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July 24, 2019

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Security Secretary Godoy was one of four victims in today's helicopter crash.

Michoacán’s head of public security was killed in a helicopter crash Wednesday morning in mountainous terrain in Villa Madero.

Martín Godoy Castro was traveling from Morelia to Huetamo with the regional head of the Seguro Popular health service, Germán Ortega. He and two pilots also perished in the accident.

The helicopter left Morelia at 8:00am but lost contact with air traffic controllers at 10:00am as it flew over San Diego Curucupatzeo. After locating the aircraft later near Villa Madero, officials said recovery efforts may be complicated by the crash site’s location high in the mountains.

Milenio Televisión reported that one of the pilots had extensive experience and had worked for the Secretariat of Public Security for at least three years, leading authorities to believe that the accident was likely caused by a mechanical failure.

Alhough officials did not mention the possibility of sabotage and Godoy Castro had not received any recent threats against him, Governor Silvano Aureoles said a full investigation will be conducted to determine the cause of the crash.

Godoy’s death comes as Michoacán is experiencing a surge in homicides and other violent crime.

He is the third politician to die in a helicopter crash in the last seven months. The newly-elected governor of Puebla, Martha Érika Alonso, and her husband Rafael Moreno Valle were killed in a crash in Puebla on December 24.

The cause of that crash has not been determined.

Source: La Voz de Michoacán (sp)

Tonnes of water lilies removed from beach in Sayulita, Nayarit

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Madison Koen

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July 24, 2019

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Far from the white sands of Quintana Roo another Mexican beach hotspot has fallen prey to seaweed in the middle of the tourist season, but in this case the quantities were significantly less.

Residents and municipal authorities have cleared as much as 20 tonnes of water lilies from beaches in Sayulita. According to reports, the invasion has also affected other beaches in the area.

Sayulita Clean Beaches spokesman José de Jesús Arreola said that the water lilies come from the nearby San Pancho lagoon, where heavy rains in recent days flooded the banks and washed the plant matter into the ocean and on to Sayulita’s shores.

But he said on Monday he did not expect the water lilies to affect the vacation destination anywhere near the magnitude of the sargassum disaster in the Caribbean. He anticipated that the beaches would be fully cleaned up by Thursday.

“This is nothing like [in Cancún], nothing like sargassum; this is minimal. The beach will soon be restored to optimal conditions for it to be enjoyed [by tourists]; [water lilies] aren’t toxic and they don’t spread disease, so it’s just an aesthetic question. This has happened before during this season, and this time the rains and flooding hit us [with the water lilies].”

Jesús Arreola said the most complicated part of the clean-up effort is manually sifting through the beaches’ sand to eliminate any remaining stems or roots of the plant.

A similar invasion occurred last week in Ixtapa, Guerrero, also due to heavy rain.

Source: La Razón (sp), El Heraldo de México (sp)

Heavy vehicle production soars 42% to new record

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Simon Schatzberg

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July 24, 2019

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A lot of trucks have been rolling off Mexico assembly lines.

Heavy vehicle production soared 42% to a record 85,965 units in the first five months of the year.

According to the National Association of Bus, Truck and Tractor Manufacturers (ANPACT), the growth was fueled by rising demand from the United States and the production of more environmentally friendly vehicles.

Of the vehicles produced, 69,822 were exported, 35.24% more than in 2018. However, the export numbers were still lower than in 2015.

Mexico is one of the biggest producers of heavy vehicles in the world, and the leading exporter of semi-trucks after having taken that title from Germany. Over the past nine years, exports of heavy trucks have gone up 192%, and 90% of those exports have gone to the United States.

ANPACT president Miguel Elizalde told the newspaper El Economista that the Mexican automotive industry produces vehicles with environmentally friendly technologies that are some of the most advanced in the world, but most of them are exported. To fuel continued growth, Elizalde said, more clean vehicles should be produced for the domestic market.

“We need to have total availability of ultra-low-sulfur diesel so that these clean technologies can be put to work,” he said. “The availability of ultra-low-sulfur diesel and the systematic upgrade of vehicles will have benefits for the health of Mexicans, and will also allow us to weather possible slowdowns in demand from our trading partners.”

Source: El Economista (sp)

Driver of car in which 4 passengers were killed gets conditional release

By

MND Staff

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July 24, 2019

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The wreckage of the BMW after the 2017 accident.

A judge has granted conditional release to the driver of a car in which four passengers died in a high-speed crash in Mexico City more than two years ago.

Carlos Salomón Villuendas was behind the wheel of a BMW 6 series coupe on March 31, 2017 when he veered off the Paseo de la Reforma avenue and struck a metal post at around 180 kilometers per hour.

Two men and two women, all aged in their 20s or early 30s, were killed in the accident that split the vehicle in two.

Salomón, whom a judge determined was under the influence of alcohol when the crash occurred even though no blood or urine samples were taken, was the sole survivor.

In January last year he was sentenced to nine years and six months in jail on charges of aggravated homicide and ordered to pay just over 1.4 million pesos in compensation to the families of three of the four victims.

Salomón, driver of the car in which four people died.

Shortly after the accident, Salomón claimed that he didn’t have the resources to pay compensation because he worked at a palatería, or popsicle shop, owned by his sister and made no more than 1,000 pesos (about US $50) a month.

However, the Mexico City Attorney General’s Office (PGJ) said on Monday that he has now paid compensation to all of the victims’ families, paving the way for his conditional release.

Salomón paid each family 377,450 pesos (US $19,800) in damages for the death of their family member as well as an additional 56,685 pesos (US $3,000) to cover funeral expenses and to compensate for non-material damage.

In addition to the payment of reparations, the judge took into account Salomón’s record of good behavior in prison and the fact that he was a first-time offender.

Under the terms of his release, Salomón must remain under house arrest and wear an ankle bracelet. He is forbidden from consuming alcohol and illicit drugs.

The PGJ requested a period of five days to prepare an appeal to the judge’s decision during which time Salomón will remain in prison.

If the judge rejects the appeal presented by public prosecutors, the 35-year-old convicted murderer will be released.

Source: Infobae (sp), Publimetro (sp)

Despite sargassum, Riviera Maya reports healthy tourist numbers

By

Simon Schatzberg

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July 24, 2019

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A sargassum-free attraction in Quintana Roo.

Hotels in the Riviera Maya registered positive numbers for the first six months of 2019 despite a negative outlook due to sargassum washing up on beaches, insecurity and the absence of international promotion because of the disbanding of the Tourism Promotion Council (CPTM).

According to the Riviera Maya Hotels Association (AHRM), the 47,287 hotel rooms in the area saw an average occupancy rate of 82% for the period, a decline of only 2% compared to the same period last year.

AHRM president Conrad Bergwerf told a press conference that considering the circumstances, the occupancy numbers are positive for the industry.

“Having almost 82% occupation is positive,” he said. “And even more so if we consider that Quintana Roo continues to be attractive for hotel investment, which added 5,000 rooms in the Mexican Caribbean this year.”

In the first six months of the year there were almost seven million occupied room-nights in the Riviera Maya. Over the same period, visits to tourist destinations in Quintana Roo increased by 2%, according to a report by the Cancún International Airport.

All-inclusive hotels had an occupancy rate of 83.6%, while European plan hotels were at 71.5%. Small hotels had an occupancy rate of 65.3%.

Bergwerf noted the Riviera Maya’s importance to national tourism and reaffirmed the hotel industry’s willingness to work with the government.

“Even though we’re going through an economic contraction in the country, the hotel sector understands the challenge and assumes the responsibility of working together with the government to find a public policy that will guarantee sustainable development for Mexico and Quintana Roo,” he said.

“The Riviera Maya is the most competitive tourism destination in the country, with extensive offerings of sun, beaches, archaeology and culture. In many cases, the businesses of the Riviera Maya are the image that visitors have of the country.”

The 420 hotels of the Riviera Maya generate over 350,000 jobs, directly and indirectly, and account for 42% of the state’s GDP, he said.

Source: El Universal (sp)

Quintana Roo sargassum is a boon for Veracruz tourism

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Madison Koen

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July 24, 2019

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One man’s bane is another man’s boon. While businesses and governments in Quintana Roo despair at the arrival thousands of tonnes of sargassum their counterparts in Veracruz are cautiously celebrating the phenomenon, for it appears to have encouraged a higher-than-average number of visitors to the state’s beaches this summer.

Sergio Lois Heredia, president of the Veracruz-Boca del Río Hotels Association, said hotels on the state’s coast have seen 73% average occupancy during the last two weeks, 13 points above what was expected.

He said the increased number of visitors is almost certainly due to the presence of sargassum in Quintana Roo.

“Because of the Caribbean’s problem with sargassum, we think that many people are analyzing other tourist destinations instead of the Caribbean, and the news is out that Acapulco’s beaches are very polluted. We must take advantage [of this situation] and give our best so that [tourists] recommend us and feel like coming back.”

The association president said he expected hotel occupancy to remain at 70% for the remainder of the season. He added that a radio, television and social media campaign by the Secretariat of Tourism featuring Veracruz’s gastronomic, natural and cultural offerings may also have accounted for the recent uptick in tourism.

Source: Al Calor Político (sp), El Universal (sp)

Social media poll finds 76% feel unsafe traveling on highways

By

Simon Schatzberg

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July 24, 2019

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Social media users expressed fear over highway travel.

The majority of social media users polled by a consulting firm feel unsafe traveling on highways in Mexico.

Only one-quarter of respondents said they feel safe traveling on the nation’s highways while 76% reported feeling unsafe, saying they had heard about a highway robbery on media outlets or social media or witnessed one.

GLAC Consulting, a risk management consultancy, also collected 6,063 social media references to highway robberies made between June 18 and the first few days of July.

The most-referenced case was a robbery of a semi-truck on the Puebla-Orizaba highway near Esperanza, Puebla, on June 19, while the second most-referenced case was the robbery of a Shell gas station on the México-Puebla highway on June 26.

More than 75% of the references to highway robberies were related to crimes targeting individual motorists, while the rest were related to robberies of trucks and buses.

However, the study collected more references to accidents and roadblocks on highways — 8,405 and 13,470 respectively — than to robberies.

There were also 231 social media complaints about protests by members of the Federal Police. Dissident officers have been occupying toll plazas to protest their transfer to the new National Guard.

The stretches of highway with the most reports of robberies were the Puebla-Orizaba highway near Esperanza, the México-Puebla highway near San Miguel Xoxtla, Puebla, and the México-Toluca highway near Cuajimalpa, Mexico City.

Source: El Financiero (sp)

Gunmen kill two police officers in San Miguel de Allende

By

MND Staff

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July 24, 2019

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Gunmen shot and killed two municipal police officers yesterday in San Miguel de Allende, Guanajuato, bringing to 24 the number of police killed in the state this year.

The attack occurred at about 1:40pm on Independencia avenue in the San Rafael neighborhood, located just over a kilometer northwest of the historic center.

The police were responding to a report of gunfire when they were shot at by armed men who got out of a black Honda SUV.

After the attack, municipal police from San Miguel and Dolores Hidalgo, soldiers and state and Federal Police participated in an operation to capture the perpetrators assisted by city security cameras, which tracked the men’s vehicle.

The Guanajuato Attorney General’s Office reported that two of three men believed responsible for the crime were arrested in the neighborhood of Montes de Loreto. Police also seized weapons and the car in which the men were traveling.

The double homicide takes the number of police officers killed in the line of duty in Guanajuato this year to 24, a figure higher than in any other state.

State security commissioner Sophia Huett described the loss of officers’ lives as “regrettable” but added that police slayings are down 42% this year compared to 2018.

“It’s not enough because we want to get to zero homicides, in other words a reduction of 100%. It doesn’t console us to have fewer homicides but we’re working and there are results,” she said.

San Miguel de Allende Mayor Luis Alberto Villareal condemned yesterday’s attack.

“I am terribly sorry about the events and secondly we condemn them. Thirdly, we’re working in coordination with the state, the federal government and the army . . . so that these cowardly acts don’t go unpunished. Fourthly, I feel very proud of the San Miguel de Allende police who did an extraordinary job to be able to follow the alleged perpetrators . . . and achieve their arrest,” he said.

Source: Milenio (sp)

Behind closed doors, Baja California extends governor’s term to 5 years

By

MND Staff

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July 24, 2019

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The Baja California Congress yesterday ratified a reform that extends the term of the next state governor, Jaime Bonilla, from two years to five.

Lawmakers first passed legislation to extend the Morena party governor-elect’s term two weeks ago, a move that was condemned by the leadership of the opposition National Action Party (PAN), several federal deputies and senators and a National Electoral Institute councilor, among others.

Bonilla was elected on June 2 and will take office on November 1. Instead of concluding his term in 2021, it now appears likely that he will remain in office until 2024.

Supporters of the extended term have argued that limiting it to two years would be too costly, but opponents say voters went to the polls on the understanding that they were electing a governor for two years.

The purpose of the shortened term was to align the state’s election for governor with the federal mid-term elections.

Ratification of the extended term took place in a hastily-organized special session of Congress held behind closed doors at the Playas de Rosarito municipal palace, located about 200 kilometers from the Congress building in Mexicali.

Congress president Benjamín Gómez convened a meeting at 3:00pm to discuss a petition sent by the federal Congress that asked state lawmakers to reconsider the legislation that extends the next governor’s term.

After the petition was discussed and declared to be in violation of the sovereignty of Baja California, it was announced that a second extraordinary session would immediately take place to ratify the extended term.

Members of the Morena, Labor and Transformemos parties supported ratification as did former deputies of the National Action and Democratic Revolutionary parties who now sit as independents as a result of their backing of the legislation.

The Congress will ask current Governor Francisco Vega de Lamadrid to promulgate the reform by publishing it in the official gazette.

If the PAN governor refuses to do so, as he has indicated he will, Congress will seek to publish the reform directly as permitted by the constitution.

Only a Supreme Court ruling could overrule the reform.

The National Human Rights Commission said last week that it would analyze the viability of filing a claim against the constitutionality of the law, while PAN national president Marko Cortés said on Twitter yesterday that his party will initiate action in the Supreme Court as a result of the decision taken “in the dark” and “outside” Baja California’s official “legislative precinct.”

In addition to criticizing the reform, some state lawmakers expressed their disapproval of the way in which yesterday’s meetings were convened.

“. . . I don’t feel comfortable with a notice [for a session of Congress] that didn’t reach me . . . I found out that the legislature would meet through third parties and the press,” said PAN Deputy Miguel Antonio Osuna Millán.

Another PAN deputy, Eva María Vázquez, said in an interview that the session was “convened illegally.”

She also described the reform as “illegal” and the whole situation as “regrettable.”

President López Obrador last week ruled out any possibility that he would intervene in the matter despite complaints that the extension of the governor’s term is undemocratic and/or illegal.

“It’s my opinion that the relevant authority should settle [the issue] . . . the president’s office won’t interfere in these matters,” he said.

The man at the center of the controversy said in a statement that he would respect any decision handed down by the Supreme Court with respect to the length of his term.

“Now it’s five years but it could change. Independently of that, we’re going to work the same way every day . . . We’re going to move ahead with our projects,” governor-elect Bonilla said.

Critics of the decision to extend his term should wait to see the outcome of any legal challenges, he said.

“Let the Supreme Court decide, but why so much scandal?”

Source: El Financiero (sp), La Jornada (sp), El Universal (sp), Milenio (sp)