Due to weak competition in the local market, the prices of goods and services in the basic basket are significantly higher in Costa Rica than in nearby countries.
A report by the Organization for Economic Cooperation and Development (OECD), called the "Economic Study on Costa Rica", concludes that consumers in the country pay higher prices for milk, rice, vehicles and Internet services.
The Ministry of Economy will be in charge of setting the average price list of the products of the basic basket that will be in force in the country.
Article 3 of the decree approved by the Congress of the Republic explains that "... the Ministry of the Economy will set the average price list as of March 15, 2020, for each of the 34 products that make up the Basic Food Basket in its different forms of presentation, unit, pound, quintal, etc."
The measure initially defined as transitory, became permanent in Panama, since the beginning of the Varela administration has been extended nine times, leaving negative balances in some sectors.
Juan Carlos Varela will close his administration with a new extension of the controversial measure that regulates the prices of 22 products of the basic basket, affecting several sectors, including meat producers, who report economic losses.
For the seventh time since 2014 the Varela administration has extended the measure that regulates the maximum retail prices of 22 products in the basic basket, up until July 2018.
From a statement issued by the Presidency of Panama:
The Price Control measure continues to offer great economic benefits to Panamanians. If not implemented in 2014, by instruction of President Juan Carlos Varela, the basic food basket would cost B/.394.15 balboas, that is to say, B/.80.04 more than what is currently paid for the 22 controlled products.
The government has extended until December prices controls on 22 basic food basket products and added six more to the list.
The products that make up the list are vegetable oil, french bread, fresh milk, medium apple, orange juice, sea bass, chicken soup with noodles, soda, oranges, sugar, ham unpackaged, evaporated milk, barjack fish, coffee, lettuce, tomato paste, plantains, bananas, fruit drinks, corn tortilla, mayonnaise, margarine, tomato, carrot, tea, garlic and salt.
Price controls will be extended for six months, and authorities are contemplating including in the list of regulated goods coffee, pasteurized milk, sugar, and oil.
The Price Adjustment Committee has recommended that the 22 products under price regulation be maintained, and that 4 more be included. This is intended to force lowering of prices for the products involved, a measure that has been prolonged for the second time this year.
The Government is considering to include in the list of products which have price controls, new ones which have had "unjustified increases" in prices.
Price regulation could be extended to more than the 22 products in the basket, because some foods have seen increases that have not been properly justified according to the Ministry of Trade and Industry. Some of these products are cooked ham, fruit drinks, lettuce, and mayonnaise, among others.
The Ministry of Economy in Panama recognizes that the drop achieved in the cost of basic goods is not what was expected, and companies are insisting on its removal.
Since price controls were implemented on 22 of the goods in the basic basket, up until September consumers managed to save $38.66, $58 less than the government had indicated could be achieved with the implementation of the measure.
The private sector in Nicaragua is opposed to the bill which intends to regulate the prices of 8 of the 53 products in the basic food basket.
The bill introduced in the Assembly intends to implement measures similar to those applied in Panama since July by the Varela administration, which have distorted the production and marketing of the products it covers, according to entrepreneurs from that country.
Experts in the field believe that trying to stabilize prices of basic goods is a short-term measure which is ineffective and unnecessary at a time when inflation is under control.
Mario García Lara, former director of the Bank of Guatemala (Banguat) told S21.com.gt that "... It is a measure which any government can utilize, but only in cases of emergency and you can expect the desired effects in the short term 'but [there are] very ephemeral' ...
Guatemala's government is negotiating with the productive sectors to stabilize commodity prices and control any increases.
The government announced that it is preparing a strategic plan to discuss with the private sector in order to prevent further increases in prices of basic food products. The purpose of the strategy is to prevent situations such as roadblocks and smuggling directly affecting production costs and then prices.
An option being studied by the government to include vegetable oil and sugar in the list of price-controlled commodities has been rejected by the business sector.
Citing significant increases in the prices of both products, the government announced it would not rule out the possibility of including them in the list of regulated commodity prices, a measure which was first implemented at the beginning of the Varela administration.
Traders are complaining that the measure creates shortages and are demanding to value products by their quality and not in a general way.
The Chamber of Commerce, Industries and Agriculture of Chiriquí further states that because of ignorance of the measure, the assessment being made of products is inappropriate because it does not take into account the quality of them when determining the price.
A decree establishing the maximum retail price and the maximum margin for sales of 22 basic food products has been made official.
Amid criticism from the private sector and consumer advocacy organizations, President Varela signed the decree by which the prices of 22 basic food items are controlled, including topside steak, sirloin steak, milk, bread and eggs.
In May prices rose by 0.22%, resulting in a cumulative annual inflation of 3.22%.
The Institute of Statistics of Guatemala reports that "...The Consumer Price Index for May 2014 stood at 115.94, registering a monthly variation of 0.22%, compared to May last year when the variation was 3.22%. "
"... The most important results for May 2014 were as follows: a one month rate of 0.22% YoY rate of 3.22%, and accumulated rate 1.10% were recorded.