November inflation in Honduras stands at 10.44%: this is how they plan to contain it

The Honduran Consumer Price Index (CPI) stood at 0.98% in November, a result mainly explained by higher prices for food of agricultural origin, influenced –in part– by the loss of crops due to the hurricanes Ian and Julia, reported the Central Bank (BCH).

In addition, it was influenced by the increases in the prices of foods of greater consumption in the season of the end of the year; as well as fuels, which recorded three weekly increases in the month in question, associated with higher international prices for refined oil.

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Derived from the above, year-on-year inflation was 10.44%, below the maximum rate reached in July 2022 (10.86%). Meanwhile, accumulated inflation reached 9.39%.

Imported inflation continues to have an impact on the evolution of domestic prices, representing close to 49.7% or 5.19 percentage points of total year-on-year inflation as of November 2022, “due to the trajectory and evolution of the international price of oil, the prices of raw materials and external supply shocks linked mainly to the conflict between Russia and Ukraine,” the BCH said.

This result was influenced, according to their contribution, by the items: “Food and Non-Alcoholic Beverages” with 5.32 pp or 51% of total inflation; “Transportation” with 1.05 pp; influenced by the rise in international hydrocarbon prices; “Accommodation, Water, Electricity, Gas and Other Fuels” with 0.85 pp and “Hotels, Cafes and Restaurants” with 0.76 pp; These items explain 76.4% of the variation in the monthly indicator.

THE MEASURES APPLIED BY THE GOVERNMENT

In order to contain the accelerated growth of prices, the Government has applied in recent months a set of economic policy measures such as subsidies for electricity and fuel.

Additionally, at a press conference, the Secretary of Economic Development (SDE), Pedro Barquero announced that they will establish maximum sales prices for 40 products in the basic basket, a measure that will be in force until January 1, 2023.

Among the products subject to determination are cuts of beef, pork and chicken, tilapia and fish, dairy products, eggs, some vegetables, rice and red beans in bulk, white sugar, ground coffee, vegetable oil and others.

Barquero explained that the maximum prices will be those registered during inspections and monitoring that the General Directorate of Consumer Protection carried out in October at fairs, markets, supermarkets, grocery stores and miscellaneous items.

With information from Bloomberg Línea