Food and politics
This article from the San Diego Union-Tribune is full of references to markets and exchange rates, but behind all that is the implication that government policy will have to react. How?Food prices push Mexico inflation to 3-year high
"Spiraling world food prices pushed Mexico's inflation to a three-year high in April, reinforcing expectations the central bank will not cut interest rates to stave off the effect of a feared U.S. recession.
"Mexican consumer prices rose 4.55 percent in the 12 months through April...
"Central bankers will closely watch upcoming data for signs of a dip in Mexico's economy, which so far has done well despite the U.S. slowdown but is expected to feel the pinch this quarter...
"Economic growth was likely 3 percent in the January-March period, the government believes. But the U.S. slowdown is expected to hit Mexico's economy soon...
"Mexico's peso, which has strengthened almost 4 percent this year... was stable..."
Labels: economics, Mexico, politics
posted by Ken Wedding @ 8:41 AM
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Mexico group warns tortilla prices set to jump
"The price of tortillas, a political hot button in Mexico where the corn pancakes are an everyday staple, is expected to jump about 18 percent by June on rising costs for fuel and corn, a major industry group said Wednesday.
"Average tortilla prices should rise to 10 pesos per kilo in June from 8.5 pesos per kilo now...
"Food costs are a serious concern for the poor in Mexico, where the minimum wage is around 5 dollars a day. In the past, the government has made deals with retailers and producers to control tortilla costs..."
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