Strengthening manufacturing hubs and integration into North American supply chains have been central to Mexico's development strategy. However, fluctuations in the domestic price level and wage growth have heavily influenced this economic progress.
Between 2012 and 2021, Mexico saw structural reforms in labor markets and varying rates of wage growth, particularly in northern border manufacturing zones (maquiladoras) where minimum wages were periodically adjusted upward. Unemployment rates fluctuated but remained relatively low, while foreign direct investment (FDI) inflows continued to target automotive and aerospace manufacturing.
| Year | Mexico's inflation rate (%) | USA's inflation rate (%) | Brazil's inflation rate (%) | OECD average inflation rate (%) |
|---|---|---|---|---|
| 2012 | 4.1 | 2.1 | 5.4 | 2.3 |
| 2013 | 3.8 | 1.5 | 6.2 | 1.6 |
| 2014 | 4.0 | 1.6 | 6.3 | 1.7 |
| 2015 | 2.7 | 0.1 | 9.0 | 0.6 |
| 2016 | 2.8 | 1.3 | 8.7 | 1.1 |
| 2017 | 6.0 | 2.1 | 3.4 | 2.3 |
| 2018 | 4.9 | 2.4 | 3.7 | 2.6 |
| 2019 | 3.6 | 1.8 | 3.7 | 2.1 |
| 2020 | 3.4 | 1.2 | 3.2 | 1.4 |
| 2021 | 5.7 | 4.7 | 8.3 | 5.2 |
Using information from the stimulus material, evaluate whether the changes in Mexico's price level between 2012 and 2021 are likely to have harmed Mexican households and firms.
