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Mexico unveils plan to tackle growing inflation

MEXICO CITY
2022-05-05 04:24

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MEXICO CITY, May 4 (Xinhua) -- Mexican President Andres Manuel Lopez Obrador on Wednesday unveiled a strategy to combat growing inflation by stimulating grain production and reaching agreements with businesses to cap product prices.

"It's not about price controls," the president said during his daily press conference attended by business leaders. "It's an agreement, a partnership to guarantee that the basic food basket has a fair price."

For his part, Finance Minister Rogelio Ramirez de la O explained that the strategy aims to increase production of basic grains such as corn, beans and rice, as well as to stabilize fuel and electricity prices.

In addition, transportation costs will not be increased by maintaining highway tolls, customs clearance costs and times will be reduced, and a zero tariff on the import of 21 of 24 basic food basket items and five strategic consumables will be sustained.

The plan will initially last for six months, with the support of a good part of the business sector that is committed to not raising prices, according to the minister.

Mexico recorded a year-on-year inflation of 7.72 percent in the first half of April, the highest level in 21 years.
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