In the last two years, inflation in Mexico has experienced a significant decrease, dropping from just over 8% in 2022 to stagnation around 4%. However, this figure is still above the inflation target of 3%, which makes it difficult for the government to lower the interest rate to boost the economy and manage the high fiscal deficit.
With the aim of containing inflation, President Claudia Sheinbaum confirmed an agreement with the business sector to establish maximum prices for food, a measure that has been adopted in past administrations. This initiative, coordinated by the Ministry of Finance and Economy, seeks to curb the increase in basic product prices to keep inflation controlled.
It has been proposed to set prices on 24 products from the basic basket as part of the new Pact for 2024-2025. Business leaders, including figures such as Altagracia Gómez and Francisco Cervantes, have been involved in these negotiations to contribute to the economic stabilization of the country.
Despite efforts to reach the inflation target of 3%, it is estimated that it could settle at 4%. Although this last figure would be acceptable for rating agencies, the Bank of Mexico projects that the annual inflation rate of 3% would be achieved by the end of next year, a vision that not all experts share.
Amid the fight against inflation, the government is facing an interest rate close to 8%, considered restrictive for the economy and complicating growth plans. The commitment to set a maximum price of 910 pesos for a range of food products represents a significant reduction from the previous agreement, showing the authorities' determination to control prices.
