Mexico Renews PACIC Agreement to Stabilize Basic Goods Prices

The Mexican government renewed its commitment to the PACIC program. During the signing event, it was confirmed that 19 food producers and 11 distributors have pledged to maintain the price of a basic basket of 24 essential products unchanged for the next six months.

Rogelio Ramírez de la O, Minister of Finance, emphasized the importance of the private sector’s role in stabilizing the cost of basic goods, which, in turn, helps create a more balanced market between producers and consumers. This initiative ensures that Mexican households will be able to purchase the basic basket of goods for no more than MX$910 (US$44.47) offering certainty to consumers.

The minister highlighted that while the current economic environment is challenging, it is not more difficult than the previous year. Inflation has decreased from 8.7% in September 2022 to 4.8% in October 2024. However, global disruptions, such as the ongoing war in Ukraine, continue to put pressure on agricultural commodities and input costs. He noted that while supply costs were once falling, they have now stabilized or in some cases risen.

Companies have agreed to keep the price of corn flour, used to make tortillas, unchanged until Dec. 31. Additionally, they will offer special product bundles at prices lower than the stipulated maximum and support the government’s campaign to promote PACIC. Signatories to the program include major retailers such as Walmart, Chedraui, Soriana, La Comer, Merza, Calimax, Aprecio, HEB, Smart, Casa Ley, SuperKompras, and Super AKI. Agroindustry participants include GrupoMar, Minsa, Lala, Bimbo, SuKarne, Kimberly Clark, Pilgrims, Schettino, Pinsa, Maseca, Verde Valle, Ragasa, Alpura, San Juan, Bachoco, La Moderna, Sigma, Opormex, and Grupo Porres.

The initiative also includes a review of value chains, such as the corn-nixtamal-tortilla chain, and other essential consumer goods. The basic basket under PACIC will include items such as pasteurized whole milk, white eggs, whole chicken, toilet paper, packaged bread, pasta (spaghetti and macaroni), canned tuna, canned sardines, vegetable oil, rice, beef cuts, commercial flours, and basic corn flour, among others.