LatinNews Daily - 13 November 2024

*Mexico’s finance ministry (SHCP) has announced the renewal of the package against inflation and high prices (Pacic), a plan first implemented by former president Andrés Manuel López Obrador (2018-2024) in May 2022 to control the prices of items in the country’s basket of 24 basic goods. The agreement was signed by government officials including President Claudia Sheinbaum and Finance Minister Rogelio Ramírez de la O, alongside representatives from 19 food producing companies and 11 retailers, which have agreed to maintain the price of items in the basic basket for the next six months. In a post on X (formerly Twitter) Sheinbaum explained that “the commitment is to fix the maximum price at M$910 [US$44.39]; this represents a reduction of M$129 compared to the previous agreement”. The price controls will be in place for six months. Inflation in Mexico stood at 4.8% in October 2024, up from 4.6% in September but lower than the rate of 8.7% in September 2022 when the plan was last in force. Included in the 24 basic goods basket is milk, eggs, chicken, toilet paper, and rice, amongst other essential items. The SHCP has also committed to strengthening the national production of grains and maintaining fuel prices. Francisco Cervantes, the director of the Consejo Coordinador Empresarial (CCE), an influential business association, has praised the agreement which he says will protect “the most vulnerable families” adding that there is scope to “add some other products to the basic basket”.