(Bloomberg) – President Andres Manuel Lopez Obrador has confirmed that the Mexican government is in talks with companies to strike commodity price deals amid the fastest inflation in two decades.
The government is seeking to reach an agreement with major Mexican companies on the price of 24 items, Lopez Obrador, or AMLO, said at a press briefing on Wednesday. The plan will be presented officially in a week.
Rice, corn, beans and milk will be included on the list, he said, adding that the plan does not involve imposing a price limit without the sellers’ consent.
“Without establishing price controls, we come to an agreement with the big food producers and with the distributors, with the big stores, and they cooperate,” he said. “Almost all have agreed to help.”
Wheat, corn and fertilizer prices soared following Russia’s invasion of Ukraine in February, and other costs rose as demand recovered from the pandemic. The surge in Mexican inflation, which reached 7.72% in early April, led the central bank to raise interest rates and is becoming a headache for the Mexican government given its impact on consumers.
Read more: AMLO plans measures to protect Mexico from food price volatility
The president’s plan to limit price hikes follows a promise to increase the domestic food supply and reduce dependence on imports by providing farmers with additional fertilizers and other types of assistance.
Read more: Mexico’s AMLO shows little interest in easing the fiscal belt
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