Jump in price of tortillas causing peso to fall flat
By VALERIE ROTA
BLOOMBERG NEWS
An increase in the cost of tortillas, a staple of the Mexican diet since the Maya ruled 1,000 years ago, has triggered a slump in the peso.
Tortilla prices jumped 5.9 percent in January, the most in eight years, after costs climbed for corn, the main ingredient. That increase fanned inflation and a bond market rout that curbed demand for the currency. The peso has fallen 2.3 percent in the past month, making it the world's second-worst performer against the dollar among the 70 currencies tracked by Bloomberg.
The currency's slide in the past month to 11.2165 pesos per dollar leaves it down 3.5 percent in 2007. Only the South African rand has fallen against the dollar more in the past month, weakening 3.1 percent.
BLOOMBERG NEWS
An increase in the cost of tortillas, a staple of the Mexican diet since the Maya ruled 1,000 years ago, has triggered a slump in the peso.
Tortilla prices jumped 5.9 percent in January, the most in eight years, after costs climbed for corn, the main ingredient. That increase fanned inflation and a bond market rout that curbed demand for the currency. The peso has fallen 2.3 percent in the past month, making it the world's second-worst performer against the dollar among the 70 currencies tracked by Bloomberg.
The currency's slide in the past month to 11.2165 pesos per dollar leaves it down 3.5 percent in 2007. Only the South African rand has fallen against the dollar more in the past month, weakening 3.1 percent.
Labels: Mexico's Ecoonomy
posted by missionaryman | 9:02 AM
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