Another aspect that would have strengthened the PACIC, Pérez del Peral stressed, has to do with greater coordination between fiscal and monetary policy, in the end “inflation is a monetary phenomenon,” he said.
“Fiscal noise does not allow prices to drop, the high deficit is 6% of GDP this year, and they are not going to lower it to 3.5% as they had promised,” said the UP academic while commenting that, once The government “rationalizes its expenses in the face of revenue that is not going to increase, it gives more certainty to the market. “That allows interest rates to go down.”
“If the government has a high fiscal deficit, it has to raise the interest rate to make it attractive for the market to lend money,” he added.
The government, through Profeco, should have done a better job of price supervision to know “how much each part of the chain was taking in price formation. With actions that the government should do that it does not do, and when it does, it does them wrong,” Cruz lamented.
Reduce the price of tortillas by 10%
Last week, President Claudia Sheinbaum and the Secretary of Agriculture, Julio Berdegué, announced that one of the goals of this government is reduce the price of tortillas by 10% in real terms .
“Of a kilo of tortilla, 25% of the inputs is the cost of corn; The rest – the other 75% – are the costs of energy, rent, the salary of the workers – who receive the minimum wage – and some tortilla producers say that they have to pay floor rights in some states,” said Fernando. Cross.
The tortilla production chain has a very fragmented structure, that is, many actors are involved in the process, “which makes these tortillas very expensive because they have logistical inefficiencies. As much as they want to lower the price of white corn; The cost structure has to be reviewed, and that is what they have not done,” he added.
According to the GCMA partner, the Ministry of Economy has to give subsidies and cheap credits to the tortilla makers so that they modernize their plant, to improve the collection structures, as well as have their own mill to reduce the production chain and “that becomes more profitable.”
With information from Dainzú Patiño
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