Mexico

Food price increases and growth constraints

Bibliographic Data

ID11650747
AuthorsMORITZ CRUZ (0000-0002-3771-8302, University of Manchester), Armando Sánchez V (University of Manchester), Edmund Amann (University of Manchester, corresponding author)
Year2011
Volume2011
Issue105
Pages73-86
Publication date2011-12-31
Open AccessNo
TypeARTICLE
VenueCEPAL review (JOURNAL)
Journal identifiersISSN: 0251-2920 • E-ISSN: 1684-0348
PublisherUnited Nations Publications (PUBLISHER • US)
DOI10.18356/0aafee9a-en
OpenAlexW576962016
LanguageEN
Citations received1
References cited15

This paper uses dynamic panel techniques to evaluate the extent to which Mexico’s consumer price index will be affected by food price inflation in the long term. We argue that sharp increases in international food prices (of the type seen since 2001) are likely to persist and to reinforce domestic growth constraints in Mexico. Our results suggest that in an economy like Mexico’s that is highly dependent on imported food, the consumer price index will be noticeably affected by international food price increases. Conducting monetary policy without reference to the structural issue of food price inflation is therefore likely to be ineffective in controlling inflation and could be damaging in terms of its impact on demand and growth. Thus, the revitalization of the Mexican agricultural sector should be a centrepiece of future counter-inflationary policy

Agricultural economics · Agriculture · Consumer price index (South Africa · Economics · Food prices · Food security · Geography · Index (typography · Inflation (cosmology · International economics · Macroeconomics · Monetary economics · Monetary policy · Price index · Economics of Agriculture and Food Markets · Global trade and economics · Monetary Policy and Economic Impact

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