In order to ensure that a possible de-regulation would not generate an unjustified increase in the products considered to be of greater sensitivity, the government decided to extend the price control system of the basic basket for six more months.
At present, the list of products whose prices are controlled includes beef slices, ribbon steaks, ground beef, whole chicken, rice, onions, yams, national potatoes, perita tomatoes, cassava, powdered milk, sliced bread, processed American yellow cheese and sausages.
Although at the beginning of the Cortizo administration it was announced that the price control system for the basic basket would be gradually removed, now the Panamanian president is threatening to add products that were already excluded again, if their prices rise.
On January 7, it was confirmed that the price control on 14 products of the basic family food basket would be extended for six more months, a measure that was rejected by the Panamanian business sector.
Panamanian businessmen are opposed to extending price controls on 14 products in the basic family food basket for six months.
The list of products whose prices are controlled includes slank, ribbon steak, ground beef, whole chicken, rice, onions, yams, national potatoes, perita tomatoes, yucca, powdered milk, sliced bread, processed American yellow cheese and sausages.
For the fifth time the Varela administration has extended the measure regulating the maximum prices of retail of 22 products in the basic basket, until July this year.
From a statement issued by the Ministry of Economy, Trade and Industry:
The national government has extended, starting from January 7 2017, the temporary regulation of maximum prices for sales of 22 products in the basic food basket (CBA by its initials in Spanish) known as price controls, taking into consideration the positive results from the immediate reduction of CBA costs, giving Panamanians greater access to necessities.
The government has extended the price freeze on seven basic food products, including red beans and ground beef, for 30 days.
From a statement issued by the Government of Honduras:
The Government of the Republic of Honduras through the Ministry of Economic Development informs the Honduran population in general, that it has been determined by Ministerial Agreement to establish throughout the national territory the maximum retail price for popular consumer products for a period 30 days.
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.
An announcement has been made that the control measures on basic food prices established at the beginning of the Varela administration could be extended "until production stabilizes in the country."
Authorities have confirmed that some changes could be made before the 6 months initially stipulated and it was stated that this measure has achieved equitable distribution of goods in the basic food basket.
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' ...
Starting July 1st controls will be applied on the maximum prices of products in a list of 22 staple goods.
Sirloin steak, rib steaks, ground beef, shanks, breast, pork chops, chicken, tuna, sausage, high quality rice, macaroni, bread, onion, yam, potato, domestic tomato, cassava, beans and lentils, are some of the goods whose prices will be controlled by the State, by decree in force from July 1, 2014, the first day of the new administration.