There is abundant empirical evidence suggesting that the pass-through of input costs is generally weak in the face of adverse supply shocks, such as rising energy costs, and strong in response to a favourable demand shock.3 So, for firms to be able to raise their prices in the way they are doing it today, they need to be operating in a market environment in which demand is strong and hence pricing power is high.
In addition, in a context of weak world trade, exports and imports of this country stagnated during most of that period. This had important repercussions on the Mexican economy, since the industrial sectors in the US and Mexico are closely integrated, and exports of the US to the rest of the world make an intensive use of Mexican manufacturing goods as inputs.