|
|
|
 Business News | May 2008 
Mexico's Calderon Says Oil to Blame for Food Prices
 Andres R. Martinez - Bloomberg
go to original
Mexico's food is becoming more expensive because of higher costs for oil and demand for crops to produce biofuels, Mexican President Felipe Calderon said in a nationally televised address in which he sought to ease concerns about higher costs for basics like tortillas and rice.
"Rest assured that my government will continue to take actions and look for sensible solutions to help you live a better life," Calderon said, a day after announcing he would eliminate import tariffs on wheat, corn, rice and beans.
Mexico is facing the fastest rate of inflation in more than three years as prices for commodities such as crude oil, corn wheat and rice reach records. Countries around the world have cut import tariffs and released stockpiles of grains to help mute inflation.
Consumer prices in Mexico rose 4.83 percent in the first half of May, the most since December 2004. The cost of importing grains has soared 75 percent to $1.2 billion in the first three months of 2008 compared with a year earlier, according to the National Statistical Agency. Mexico imports a majority of the rice and wheat it consumes.
The government will also cut in half a tariff on powdered milk to help lower food prices. Import taxes on sorghum and soy bean paste will be eliminated.
The government will spend 200 billion pesos ($19.3 billion) on energy subsidies this year, Calderon said.
To contact the reporter on this story: Andres R. Martinez in Mexico City at amartinez28(at)bloomberg.net. |
| |
|
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us