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Economy & Business - May 2022
MEXICO: Gov’t anti-inflation plan likely to have limited impact
On 4 May, Mexico’s President Andrés Manuel López Obrador unveiled a plan to limit the extent of rising prices of foodstuffs and other basic goods. When López Obrador first announced he was seeking to address the impact of inflation, business groups and specialists raised concerns that the government may try to impose price controls, which create significant market distortions. However, the measures proposed in the package against inflation and high prices (Pacic) largely focus on supply and on reducing costs in order to increase competitiveness.
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