8/20/15 Bloomberg Business
Across Latin America the drop in commodity prices has sent currencies tumbling, spurring faster inflation. Everywhere, that is, except for Mexico. Mexican consumer prices rose 2.74 percent in July from the year earlier, the slowest pace in almost half a century and less than any other major economy in the region.
The last time inflation was this slow in Mexico was 1968, when the Vietnam War was at its height, the Beatles were in the charts with “Hey Jude” and the Soviet leadership was preparing to crush the Prague Spring.
So what makes Mexico different than its Latin American counterparts? Part of the answer lies with billionaire Carlos Slim. An overhaul of Mexico’s telecommunications industry has increased competition for Slim’s America Movil SAB and eliminated domestic long-distance charges for all carriers, slashing communication costs by 12.5 percent in the past year. That’s far more than in any other country in the four-member Pacific Alliance that also includes Colombia, Chile and Peru.