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The President of Mexico accused soft drinks for always selling their products above what the inflation rate dictates.
According to this, the excuse used by the brands was the increase in taxes, although he assures that now there have been no increases in his administration.
He also accused the media of contributing to these increases by focusing the blame on the government.
Today, during the press conference “La Mañanera”, President Andrés Manuel López Obrador (AMLO) attacked the food producers and the soft drinks for having historically increased prices above what inflation demands.
He also pointed out that in terms of inflation, Mexico contributes more than the United States and a little less than the total contribution of the European zone. Finally, the head of the executive assured that to a large extent, the excessive increase in soft drinks and food brands is largely due to the collaboration of the media:
“In a biased way, all the media, we stopped delivering more than 40 billion pesos to the media in advertising, but that is the least of it. What bothers them the most is that they can no longer do business. Because the media used them to threaten the government. To blackmail the government and receive juicy contracts in exchange.”
After pointing this out, the president accused some of the Mexican media for helping to provoke excessive increases in the prices of supplies and soft drinks, “and I am going to say something else that the Reforma will not like very much…”, added.
AMLO accuses soft drinks companies of historically increasing prices above inflation
The President of Mexico accused the media of historically being complicit in increases to soft drinks and other food brands, which apparently took advantage of the inflationary effects to increase their products above that percentage.
“It is important to clarify this because, even if there are no reasons to increase prices, if an environment is generated that there is inflation, that there is a shortage, some food and merchandise distributors take advantage to increase prices, blaming the Government. For this reason, among other things, we made the decision not to increase taxes. Because what happened, every year that a tax increase was announced, if it was said that soft drinks would increase 5 percent, there were some soft drinks that increased soft drinks by 10 and 20 percent, blaming the government.”
“Now they can’t talk about it being due to a tax increase because there hasn’t been a tax increase, among other things for that reason. And this is what happened in 2001, 8.9 (percent)”.
With this, the President assured that the balance of inflation in Mexico is below 8.8 where it was two months ago, whereas now it is in 7.8 percent. There, he accused the media such as El Reforma and El Financiero of explaining the issues little, favoring this type of increase.
Finally, he shared the inflation scale between Mexico, the United States and Europe, in the month of December. There, he placed Mexico at 7.7 percent, “because of this decision we made on the subsidy for gasoline, in energy,” he added.
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