| | |  News Around the Republic of Mexico 
Mexico Seeks to Damp Tortilla Prices With New Antitrust Rules
 Jonathan J. Levin - Bloomberg
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June 01, 2010
| | Tortillas are the biggest food component in Mexico’s inflation index, and prices for the cornmeal-based bread used for tacos climbed 5.14 percent in April from a year earlier. | |
Mexico’s antitrust commission said municipal governments should eliminate rules that harm competition among tortilla makers and drive up prices for the staple food.
The agency, headed by Eduardo Perez Motta, said municipalities impede competition with unclear requirements for opening new shops to make tortillas, according to a set of recommendations e-mailed today.
Cities and towns should also eliminate limits on the number of tortilla makers in designated areas, remove requirements that they use local corn and cease the practice of consulting existing tortilla businesses over whether new shops should be allowed to open, the commission said.
“These guidelines are a tool for municipal governments to reform their regulations to favor the consumer, eliminating privileges that affect the society,” Perez Motta said.
Tortillas are the biggest food component in Mexico’s inflation index, and prices for the cornmeal-based bread used for tacos climbed 5.14 percent in April from a year earlier. Mexico’s consumer prices fell more than forecast in the first half of May and annual inflation slowed to less than 4 percent.
Tortillas sell for an average of 8.69 pesos per kilogram (31 U.S. cents per pound) in Mexico City, according to data from the Economy Ministry.
To contact the reporter on this story: Jonathan Levin in Mexico City at jlevin20(at)bloomberg.net
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