The Mexican government and 15 food production and distribution companies presented this Monday an anti-inflation plan with the goal to reduce by 8% the average price of the basic basket amid the highest price rise in 22 years.
“The price of gasoline will not increase, the price of diesel will not increase, the price of electricity will not increase and the prices of basic foods will not increase, that is the essence of everything, and we are going to continue promoting the basic production”, declared the president, Andrés Manuel López Obrador.
The initial effort of the agreement between the Government, producers and stores will be reduce the maximum average price of the 24 products of the basic basket from 1,129 pesos to 1,039 pesos (51.95 dollars) until February 28, 2023, detailed the Secretary of the Treasury, Rogelio Ramírez de la O.
Among the signatory companies, Walmart, Soriana and Chedraui supermarkets stand outin addition to the two largest producers of corn flour to make tortillas, Grupo Gruma-Maseca and Grupo Minsa.
There are also the tuna Tuny and Pinsa-Dolores Group; chicken and egg producers Bachoco, San Juan and Calvary; the meat companies Sukarne, Gusi Group, and Opormexand various food manufacturers such as Sigma Alimentos and Valle Verde.
“There is no imposition, there is no coercive measure, it was based on convincing and persuading, and because of your willingness to help, then this is going to have a very positive effect,” López Obrador stressed.
The food challenge
The plan is announced after it was revealed that the Mexican general inflation rate rose in the first half of September to 8.76% per year, the highest rate for an equal period since 2000, according to the National Institute of Statistics and Geography (Inegi). .
Of this rate, almost half, 4.2 percentage points, corresponds to food, warned the Secretary of the Treasury.
“Unlike the United States, where inflation is demand, in Mexico it is supply, for that reason the best response is to produce more food and reduce regulatory and logistical costs by the Government and producers,” said Ramírez de the O
In the “Opening Agreement against inflation and famine”, the federal government will grant a single universal license for import and distribution of food that will exempt companies from all procedures and permits, and the general import tax, deepened the Secretary of the Treasury.
The Government will also suspend the review of any regulation that hinders the distribution of basic foods.
Likewise, the Government will maintain its fuel containment policy, which implies the fiscal subsidy to gasoline, which has cost 293,000 million pesos ($14.65 billion) this year, according to data provided by the president on September 1.
Tolls for the use of highways will also be frozen, added Ramírez de la O.
On the other hand, the Government will reinforce policies for the national production of food for which the export of white corn, beans, sardiana will be suspendedand aluminum and steel scrap used for food packaging.
While the corn flour businessmen, Maseca and Minsa, will not increase prices and will even seek to reduce them by 3% compared to the current average.
The Federal Consumer Attorney’s Office (Profeco) will be in charge of monitoring the agreement, but López Obrador insisted that it is a sign of the will of businessmen to lower inflation.
“We have that challenge, that challenge, but fortunately we have the support of this group of businessmen, industrialists, merchantsthat before the call that was made to them they come and in an exemplary manner they commit to help”, he highlighted.
EFE International news agency based in Madrid and present in more than 110 countries.