(Bloomberg) -- President Andres Manuel Lopez Obrador confirmed Mexico's government is in talks with companies to reach price agreements on basic goods amid the fastest inflation in two decades.
The government is seeking a deal with major Mexican businesses on the price of 24 items, Lopez Obrador, or AMLO, said at a press briefing on Wednesday. The plan will be presented formally in a week.
Rice, corn, beans and milk will be included on the list, he said, adding that the plan doesn't involve imposing price limit without sellers' consent.
“Without establishing price controls, we're reaching an agreement with major producers of food items and with distributors, with department stores, and they're cooperating,” he said. “Almost all of them have agreed to help.”
Prices of wheat, corn and fertilizer soared in the wake of Russia's invasion of Ukraine in February, and other costs have crept up as demand recovers from the pandemic. The spike in Mexico's inflation, which reached 7.72% in early April, has led the central bank to boost interest rates and is becoming a headache for the Mexican government given its impact on consumers.
Read more: AMLO Plans Measures to Shield Mexico From Food Price Volatility
The president's plan to limit price increases follows a promise to increase domestic food supply and cut dependence on imports by providing farmers with extra fertilizer and other kinds of assistance.
Read more: Mexico's AMLO Little Interested in Loosening Tight Fiscal Belt
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