Mexico freezes food prices

Food manufacturers promised Mexico's government to freeze prices on more than 150 food products today to help families cope with rising costs.

President Felipe Calderon announced that prices for goods such as cooking oil, flour, canned tuna, fruit juices, coffee, ketchup and canned tomatoes will remain fixed until December 31.

"This is a measure that will positively and directly benefit the finances of millions of Mexicans," said Calderon, flanked by representatives of Mexico's business chambers. "This reflects the commitment of Mexican businessmen to the country and to price stability."

Calderon, a conservative elected in 2006, has already taken several steps to fight high prices.

He eliminated import barriers on wheat, corn and rice in May, won an agreement from rice farmers to sell their crop at 10% below international market prices and last year imposed price caps on tortillas, Mexico's staple food.

He also announced small monthly cash subsidies to 26 million poor Mexicans, about a quarter of the population. The cash payments of about 120 pesos ($11.6) a month are expected to cost about $433m.