Mexico Expands Tariff Elimination on Basic Basket Products to Counter Inflation
For the third time, the Mexican government has extended the tariff exemption on basic basket products such as beans, flour, rice, and packaged chilies until December 2024. This move aims to combat inflation, which has risen in the last quarter of the year.
The exemption applies to products from importing companies registered in the ‘Registry of Importers of Basic Basket Products’ who have entered into contracts to acquire the mentioned goods. The basic basket, historically consisting of 24 products, will be expanded to 40 as part of President Andrés Manuel López Obrador’s efforts against inflation. The decree comes after the Mexican general inflation rate rose to 4.46% annually in the first half of December, surpassing market expectations and the Bank of Mexico’s target of 3%.
This data represents three consecutive fortnights of increase after November’s 4.32% index, ending 2022 with a 7.82% rise, the highest level in the last 20 years.
Read full article: https://www.forbes.com.mx/mexico-amplia-eliminacion-de-aranceles-a-productos-de-la-canasta-basica-contra-la-inflacion/