Ecuador: Govt puts price ceiling on basic foods
Ecuador’s government has decreed price limits on nine basic food products in an effort to combat food inflation.
Price limits are fixed on goods in the basic food basket, which registered a 9.87% annual price increase in July. Inflation over the same period last year was 2.58%.
The decree was issued with the objective of lowering production costs and avoiding speculation.
It did not state the source of speculation, though the government has blamed business-related opposition groups in the past.
Price limits are established on basic goods such as noodles, milk and chicken and are in place until December 2009.
Price limits on rice are fixed until December of 2008. The export of rice is banned in Ecuador.
