MEXICO CITY- Mexicans who already feel the pinch from a gasoline price hike share economists fears it will now drive up the cost of food and other basics, adding to the unpopularity of the government ahead of elections this year and next.
Riots that broke out after a 14 percent increase in regular gas prices on Jan. 1 also reflected anger at President Enrique Pena Nieto over corruption, crime and the failure of reforms to improve living standards.
More increases in fuel prices are slated for February as the government phases out subsidies, but Pena Nieto vowed he would keep a lid
on other consumer prices, and the central bank said any spike in inflation would be temporary.
In Mexico City's Granada market this week, few gave credence to such reassurances, a sign of the risk for the ruling Institutional Revolutionary Party in governor elections this year and the 2018 presidential vote.