Primary Article:
On November 12, 2024, President Claudia Sheinbaum announced at the National Palace the signing of the Package Against Inflation and High Prices (PACIC). This agreement aims to cap the cost of a basic basket of 24 essential products at a maximum of 910 pesos, marking a significant reduction from the previous limit of 1,039 pesos. During the announcement, Sheinbaum expressed gratitude for the collaboration between her administration and various sectors of the economy in supporting the wellbeing of Mexican families.
Among those present at the signing were key governmental figures including Rogelio Ramírez de la O, Marcelo Luis Ebrard Casaubón, and other prominent cabinet members such as the heads of the Ministry of Finance and Public Credit, Ministry of the Economy, Ministry of Energy, and the Ministry of Agriculture and Rural Development. Also in attendance were leading figures from major state-owned enterprises like Petróleos Mexicanos and the Federal Electricity Commission, along with the head of the Tax Administration Service.
The agreement was also backed by 19 food production companies and 11 major retailers, including giants like Walmart, Soriana, and Chedraui. Leaders from these sectors pledged not to increase prices on essential goods and to help stabilize the market for consumers. Additionally, they committed to freezing prices for essential grains, including those used for making tortillas, until the end of 2024.
The federal government reinforced its own role, committing to sustain existing fuel prices and control public utility rates. This strategic collaboration between the public and private sectors is seen as crucial in addressing economic challenges and ensuring stability for Mexican consumers.
Secondary Article:
Mexico’s Initiatives to Combat Inflation Extend to Fuel Price Stabilization
Alongside the initiative to cap essential goods at a certain price, the Mexican government is also focusing on maintaining stable fuel prices in an effort to control inflation. As global oil prices fluctuate, Mexico’s strategy includes subsidies to keep domestic gasoline and diesel prices from soaring. According to the Secretary of Finance, maintaining these subsidies is essential to prevent further economic strain on lower-income populations and maintain broader economic stability. Moreover, the government reiterated its commitment to keep electricity tariffs predictable, ensuring no rise beyond the inflation rate. This multi-faceted approach to inflation demonstrates the administration’s focus on comprehensive economic management as part of President Sheinbaum’s broader policy goals.
This broader strategy showcases Mexico’s dedication to protecting its citizens from global economic pressures, ensuring that basic needs remain affordable, and underscores the government’s ongoing negotiations and cooperation with both domestic and international partners to achieve economic resilience.