Government Agreement with Companies to Maintain Stable Prices on Basic Food Items

This week, the Mexican government signed a pact with food producers and retailers aimed at keeping the prices of basic food items stable, President Claudia Sheinbaum announced on Monday. This agreement seeks to continue the PACIC (Anti-Inflation and High Prices Package) initiated by former President Andrés Manuel López Obrador to manage price increases that drove inflation to historic levels.

During her regular press conference, Sheinbaum stated, "This week we will sign the PACIC again, which includes business owners and producers, to prevent increases in basic food prices." Among the companies involved in the previous agreement to halt price hikes are Walmart de México WALMEX.MX, Chedraui CHDRAUIB.MX, La Comer LACOMERUBC.MX, and Soriana SORIANAB.MX. Of the 24 products that make up the PACIC basic food basket, 17 have experienced increases above the average inflation rate from May 2022 to September of this year. Oranges topped the list as the product with the highest increase, seeing a rise of 84.6%, which is nearly seven times the national inflation rate. Following closely are carrots, limes, and white potatoes, with increases exceeding 40%, according to data from Inegi. In May 2022, López Obrador launched PACIC and reached agreements with producers, distributors, and retailers to lower the prices of essential goods, as well as authorizing tariff-free imports of foods like corn flour, wheat flour, white corn, sorghum, and beans. Information from Reuters, Dainzú Patiño, and José Avila.

These types of agreements are essential for stabilizing family economies, especially during times of high inflation. The collaboration between the government and the private sector can help ensure a better distribution of basic goods and ensure that the most vulnerable are not severely affected by rising prices. However, it is crucial that these measures are sustainable in the long term and not just a temporary fix to curb inflation.