Tortilla Prices in Mexico Anything But Flat

Yup, let’s use food to fuel our cars…

From Mexico Watch:

Spiking tortilla prices fueled public outrage this week, prompting protests and demands for government action that forced President Felipe Calderon to announce a range of measures to contain the inflation. According to the Bank of Mexico, tortilla prices rose 13.8 percent in 2006, and at an accelerated rate as of September. They continued climbing in January, perhaps even more quickly. The press reported that prices exceeded 10 pesos per kilogram in certain markets, compared with around 6 pesos a year ago.

With more and more corn going to produce ethanol, the price was bound to go up. So, do you still think it is a good idea to use the worlds food source for energy?

the BBC reports:

“When there isn’t enough money to buy meat, you do without,” one woman in Mexico City, Bonifacia Ysidro, told the Associated press. “Tortillas you can’t do without.”

Ms Ysidro said she paid 25 pesos – about a sixth of her family’s daily income – for enough tortillas to feed her family of six.

Under the 1994 North American Free Trade Agreement, Mexico used to get cheap corn imports from the US, but Mexico’s Economy Minister Eduardo Sojo said that with more US corn being diverted into ethanol production, supply was dwindling.

Kind of ironic, isn’t it?

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