### Impact of Rising LP Gas Prices on Regional Economy: Expert Insights
The recent increase in the cost of LP gas is significantly impacting the economy of the region, particularly affecting consumers with lower incomes and local businesses, according to economist Jorge Fonseca. From August 4th to 10th, LP gas is being sold at 19.57 pesos per kilogram, a substantial rise from 17.99 pesos in January and 16.29 pesos in August 2023.
Fonseca highlighted that Baja California now has the highest LP gas prices in Mexico, with increases exceeding 20%, creating additional financial stress for consumers. He pointed out the ripple effect on businesses such as tortillerías, bakeries, and restaurants, which rely heavily on LP gas for their operations.
The economist also noted that this price hike comes amidst an inflation rate that remains above expectations set by the Bank of Mexico. Currently, inflation has stayed above the target rate of 3% for over 40 months, reaching 5.61% in the first half of July. Fonseca elaborated that non-core inflation, which includes volatile prices of goods like potatoes, onions, fish, meat, and eggs, has also surged, now standing at 10.64% annually according to the National Consumer Price Index (INPC).
This continuous rise in LP gas prices and overall inflation is exerting pressure on both consumers and businesses, complicating the economic outlook for the region.
#### Related News: UK Households Grapple with Rising Energy Costs
As LP gas prices soar in Mexico, a similar trend is being observed in the United Kingdom, where households are facing unprecedented increases in energy bills. Reports indicate that millions of UK residents are struggling to manage rising gas and electricity costs, partly driven by high global energy prices and geopolitical uncertainties.
In response, the UK government has announced measures to support vulnerable households, including subsidies and price caps, to mitigate the financial burden. However, experts warn that these solutions may only offer temporary relief as long-term strategies are needed to address the root causes of the energy crisis.
While the situation differs geographically, both regions highlight the global impact of rising energy prices on household economies and the urgent need for sustainable solutions.
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For further details on how the rising LP gas prices affect the local economy and other related news, visit TJGringo.com.