President Andrés Manuel López Obrador and the Secretary of the Treasury, Rogelio Ramírez de la O, presented this Wednesday during the morning conference at the National Palace, the plan to combat inflation and rising prices in Mexico.
The plan consists of increase the production of grains such as corn, beans and rice through the “Sowing Life” and “Production for Wellbeing” programs; in addition to extending support in the distribution of fertilizers to 9 states of the Republic. This measure seeks to expand production by up to 2 million tons.
The strategy is designed solely for the next six months. Later, other schemes will be added and other measures will be planned.
In an interview with Aristegui Noticias, Fabián Ghirardelly, Country Manager of Kantar Worldpanel Mexico, celebrates the government’s effort in the face of rising inflation, considers that the The plan will serve as containment, but it will not solve the problem since it is an initiative that will work in the short term.
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“I think there is a spirit behind it that seems correct to me, which is to understand that this It is a joint effort of both the private and public sectors. because of its size. In short, I believe that it is better to do something than to do nothing and in a short-term context”, he stated.
However, Ghirardelly warns that when the meeting point between supply and demand is altered or manipulated, an unnatural side effect is generated in the market.
“Economic theory and history tells us: whenever we alter this ‘magic hand’ that regulates supply and demand and thereby sets prices, ends up generating some alteration and some tangential problem in the economy in some other way.
Among the strategies presented, the government announced that several companies “voluntarily accepted” maintain the prices of your products and services. Telmex, for example, will not raise the price of its telephone rates and Grupo Bimbo will maintain the price of large white bread.
In this regard, the Country Manager of Kantar Worldpanel Mexico, explains that this measure will only be achieved by large companies because they have more financial capital to do so; while medium or small ones will not be allowed to join the strategy and therefore the effectiveness of the plan will not have a great effect.