Presidential slip of the tongue on rising food prices

IN A “WATCH MY LIPS” statement in n his state of the union address on Friday July 2  President Juan Carlos Varela said that food prices are stable, when official figures ahow they have risen.

The most recent report of the basic family shopping basket, which tracks the cost of necessary items for a typical family, by the Ministry of Economy and Finance reveals that, for the month of April, this economic indicator cost $307.23 in the districts of Panama and San Miguelito, while for the interior of the country it was $279.71, reports La Prensa

This means that the price of the basket had risen $8.08 in the capital city and $5.38 in the interior when compared with prices that were recorded in April 2015.

Since May 2015, the basket has shown a steady price increase. The only months to record price reductions were June and October of that year.

The report, the release of which was delayed by two months, argues that the volatility of prices was higher than last year, which has caused more uncertainty in the markets.

The government will be issuing a decree next week that will extend price controls on 22 products in the basic basket.

People in the food industry report that producers of products like poultry are selling at the ceiling prices established by the state when in reality market forces would make the prices lower.