Chip shortage could pressure Mexico consumer prices for two years – finance minister

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FILE PHOTO: Mexico's Finance Minister Arturo Herrera attends an interview with Reuters, in Mexico City
FILE PHOTO: Mexico’s Finance Minister Arturo Herrera gestures as he speaks during an interview with Reuters, at the National Palace in Mexico City, Mexico December 30, 2020. REUTERS/Gustavo Graf Maldonado

June 30, 2021

MEXICO CITY (Reuters) – Mexican consumer prices could stay under pressure for another two years due to a global shortage in semiconductor chips, a situation that has boosted car prices, Mexico’s finance minister Arturo Herrera said.

Speaking in a television interview on Tuesday night, he noted that new semiconductor chip plants can take two years to build, meaning a delay in increasing the chips supply. “We’re going to have this type of pressure for the next two years,” Herrera said.

(Reporting by Anthony Esposito, Writing by Daina Beth Solomon)