Thu, 11 Aug 2022

MEXICO CITY, Aug. 2 (Xinhua) -- The Mexican government will take more measures to counter rising inflation as part of the package against inflation and famine that took effect in May, Secretary of Finance Rogelio Ramirez de la O announced here Tuesday.

The government will not raise the cost of energy, but will accelerate the import of basic products while limiting the export of white corn to increase reserves, said the official at a press conference.

Without the package, Mexico's inflation would be 10.7 percent and not the current 8.16 percent, he said, adding the higher inflation would have caused a sharp fall in household consumption, which would consequently lead to the fall of sales volume, the VAT (value-added tax) and even all economic movements, forcing the Bank of Mexico to raise interest rates even more.

The strategy has been "successful" since the basic basket of 24 products it includes has stabilized, in contrast to the items on the national Consumer Price Index, the official stressed.

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