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Government announces inflation prevention plan focused on 6-month production

The federal government announced on Wednesday a six-month plan to curb inflation without resorting to price controls.

President Lopez Obrador has announced that the government has reached an agreement with the private sector to ensure fair prices for 24 products. canast abásicaBeans, rice, eggs, sugar and other basic food choices.

“The decision was made to address, persuade, persuade, and encourage producers, distributors, and retailers to act together on food-related issues. [with the government], No compulsory measures. It’s an agreement, not a price control, an alliance to guarantee it. canast abásica It’s a fair price, “he said at a press conference in the morning.

Without being targeted Price controlThe agreement aims to reduce the prices of products such as cooking oil, tuna, beef, chicken, onions, milk, potatoes, toilet paper and tortillas. If inflation remains high at the end of the year, it may be renewed.

Inflation hit a 20-year high of almost 8% in the first half of April.

Treasury Minister Rohelio Ramirez de la O has unveiled various other measures that are part of an anti-inflation program aimed at increasing staple food production and stabilizing fuel prices.

“We are currently proposing an increase in grain production … [the plan] Ramirez added that the government would establish a strategic stockpile of corn.

Among the other measures he outlined were the embargo on highway toll increases and the elimination of tariffs on various imported goods, including many basic products.

The Finance Minister also said Carlos Slim, Mexico’s wealthiest person and owner of telecommunications companies Telmex and Telcel, has promised not to raise Internet prices this year. Lopez Obrador said Slim also promised not to increase the cost of telephone services.

Liliana Mejía Corona, an executive at the pastry company Grupo Bimbo, said at a press conference with the president that the price of white bread will not rise this year. Meanwhile, Walmart executive Alberto Manuel Sepúlveda said that the supermarket chain will help the government control inflation and promote the well-being of its citizens.

Representatives of many other retailers, food producers and corporate organizations attended the press conference to show their support for the anti-inflation program.

Treasury Minister Ramirez said the embargo on highway toll increases is one of the measures in the anti-inflation plan.

Ramirez said the government’s expectations are that this plan canast abásica product. Farmers’ efforts to increase production are supported by government fertilizer provision and other incentives.

“We believe [increasing] Supply and cost reductions stimulate competitiveness [agriculture] “Industry,” Ramirez said.

“… We believe that… we will have a rapid impact on the price of…. canast abásicaThat’s the purpose, “he said.

Regarding the six-month period of the plan, the Finance Minister said it was unclear how long international pressure on prices would last, but the government would hold further dialogue with companies to address the shortage of certain products. He emphasized that he was giving time.

Lopez Obrador emphasized that the government is “doing something” rather than “lazy” and argued that anti-inflation programs help reduce inflation, but other measures must be taken.

He thanked the private sector for his willingness to work with the government for “national and national interests” and addressed the possibility of central banks raising benchmark interest rates (currently 6.5%) due to high levels of inflation.

Lopez Obrador said raising interest rates is not good for the country, before emphasizing respect for the Bank of Mexico’s decision.

“Of course, the Bank of Mexico is autonomous and they have to decide, we [bank’s] Autonomy … But the less the interest rate rises, the better, so there is investment and economic growth. If there is economic growth, there is employment. If you have employment, you have happiness. With happiness, there is peace and tranquility, “he said.

In the report from Reforma When Mirenio



https://mexiconewsdaily.com/news/government-inveils-anti-inflation-plan/ Government announces inflation prevention plan focused on 6-month production

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