Mexico unveils new plan to fight inflation

The Mexican authorities have reached a new agreement with the country's entrepreneurs as part of the action plan to combat inflation, price increases and shortages, which will be in effect until the end of February 2023. This was announced by the President of the country Andres Manuel Lopez Obrador.

The Minister of Finance of Mexico noted that inflation in the country is not caused by demand, as in the United States, but by supply, therefore, an effective method of combating price increases is to increase supply. And at the same time as increasing the supply of food, the government intends to reduce regulatory and logistical costs on the part of the state and producers.

Back in the spring, the Mexican authorities adopted an anti-inflationary package of measures, including maintaining the cost of the basic basket of food at the level of 1,039 Mexican pesos ($51.8). Now this package has been expanded somewhat. 

In particular, the government will provide companies with a single license to simplify sanitary procedures, import goods and packaging, maintain fuel subsidies and freeze concession rates for toll road operators. In addition, consideration of any new regulations that could prevent the import and transportation of food in the country will be postponed.

Recall that in mid-September, inflation in Mexico was 8.76% – this is the highest level since 2000. The country's central Bank rate is also at a record high of 9.25%.