- Title: Mexico seeks to contain prices as anger mounts over fuel hike
- Date: 9th January 2017
- Summary: MEXICO CITY, MEXICO (JANUARY 9, 2017) (REUTERS) ****WARNING CONTAINS FLASH PHOTOGRAPHY*** GENERAL VIEW OF EVENT FOR SIGNING OF ECONOMIC STRATEGY TO ASSIST FAMILIES PRESIDENT ENRIQUE PENA NIETO GREETING PRESIDENT OF THE BUSINESS COORDINATING COUNCIL, JUAN PABLO CASTANON SIGN THAT SAYS "AGREEMENT FOR THE STRENGTHENING OF THE ECONOMY AND PROTECTION FOR FAMILIES" OFFICIALS AT EVENT GENERAL VIEW OF EVENT PENA NIETO SPEAKING AT EVENT (SOUNDBITE) (Spanish) PRESIDENT ENRIQUE PENA NIETO, SAYING: "All signatories, especially in the labour and rural sectors are committed to improving productivity in their sectors. Also, the government of the Republic has promised to continue dialogue with productive sectors and the measures of supervision to ensure the stability of prices of the basic of goods." PENA NIETO AT EVENT (SOUNDBITE) (Spanish) PRESIDENT ENRIQUE PENA NIETO, SAYING: "Be confident that we will do all that is necessary so that the adjustment in petrol prices will have the least possible impact on the family finances. Today, Mexico has a strong, dynamic and competitive economy." AUDIENCE AT EVENT APPLAUDING PENA NIETO VARIOUS OF OFFICIALS SIGNING AGREEMENT VARIOUS OF PENA NIETO AND OFFICIALS SHOWING OFF AGREEMENT PENA NIETO SHAKING HANDS WITH UNION LEADER CARLOS ACEVES GENERAL VIEW OF EVENT MEXICO CITY, MEXICO (RECENT) (REUTERS) VARIOUS OF PROTESTERS WITH BANNER DENOUNCING PETROL PRICE INCREASE PROTESTERS BLOCKING ACCESS TO PETROL STATION ELECTRONIC BOARD WITH PETROL PRICE VARIOUS OF PROTESTERS MARCHING MORE OF PROTESTERS
- Embargoed: 24th January 2017 23:46
- Keywords: Mexico agreement avoid increases food goods service prices rise gasoline violent protests Pena Nieto economy
- Location: MEXICO CITY, MEXICO
- City: MEXICO CITY, MEXICO
- Country: Mexico
- Topics: Government/Politics
- Reuters ID: LVA0015YD183N
- Aspect Ratio: 16:9
- Story Text: Mexico vowed to keep a lid on prices as part of an economic plan set out on Monday (January 9) to dampen widespread outrage over a major fuel price hike.
Under proposals announced by President Enrique Pena Nieto, business, government and union leaders pledged to keep the price of staple goods stable, cut salaries of senior government officials by 10 percent and encourage capital repatriation.
"All signatories, especially in the labour and rural sectors are committed to improving productivity in their sectors. Also, the Government of the Republic has promised to continue dialogue with productive sectors and the measures of supervision to ensure the stability of prices of the basic of goods," Pena Nieto said, flanked by his cabinet and business leaders.
The move comes after the government hiked gasoline prices by 14 to 20 percent on January 1, sparking protests across Mexico, which is already facing a slumping currency, rising inflation and economic threats from U.S. President-elect Donald Trump.
Pena Nieto sought to reassure the public over price increases with his new economic pact.
"Be confident that we will do all that is necessary so that the adjustment in petrol prices will have the least possible impact on the family finances. Today Mexico has a strong, dynamic and competitive economy," he added.
In the wake of the petrol price hike demonstrators have blocked roads and gas stations, and looting of shops has led to hundreds of arrests.
The accord presented by the government was thin on details and was not signed by Mexico's main employers' federation Coparmex, which criticised it for lacking clear, measurable targets and metrics to assess progress.
The rise in gasoline prices is part of a liberalisation program aimed at gradually bringing prices up to market level. Some analysts are already expecting inflation to crest above the central bank's 4 percent ceiling.
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