MEXICO CITY (Reuters) – Mexico’s main food retailers have agreed to maintain a deal with the government to limit the prices of 24 basic food staples in order to help tame inflation, a government official said on Monday.
President Andres Manuel Lopez Obrador last week said the government was seeking to extend the 2022 pricing agreement to keep inflation in Latin America’s No. 2 economy on a downward trend.
David Aguilar, who heads state consumer protection office Profeco, said authorities met last week with Walmart’s Mexican arm and the country’s retailers’ association ANTAD, which groups together over 47,000 establishments.
“All of them reiterated their commitment to continue maintaining the prices of the 24 basic food products, as in the original PACIC agreement,” Aguilar said.
PACIC, signed in 2022 as inflation reached highs not seen in two decades, was used to protect prices for key staples such as corn used to make tortillas.
Mexico’s central bank meanwhile raised its benchmark interest to historic record of 11.25% and has maintained it at this level since March.
Inflation slightly sped up in November to 4.32% over 12 months, compared to 4.26% in October when it hit its lowest point since early 2021, although the core inflation metric continued to decline.
(Reporting by Sarah Morland; Editing by Alistair Bell)
