News

Guatemala, Apr 18 (Prensa Latina) Guatemalan President Alvaro Colom reported that his government was negotiating on Friday the prices of several products to stop excessive price increase of basic products and reduce the cost of living. Commissions composed of officials, cooperative members, and some businesspeople are trying to reach consensus to stabilize products as bread, flour, poultry meat, eggs, rice, and domestic gas for cooking.

According to the president, they are working to announce on Sunday a package with concrete measures to establish what he called "prices of solidarity."

In some cases, prices could return to the values established before January 15, but in others the aspiration is to avoid higher rises during the rest of the year, said Colom.

He also said they are trying to convince producers of reducing their margins of profits to alleviate the pressure on the economy of low-income families.

However, the private sector, grouped in the powerful Committee of Agricultural, Trade, Industrial and Financial Associations, denied that the government talks are developing at the level of guilds.

Javier Zepeda, executive director of the Guatemalan Chamber of Industry rejected any official initiative designed to limit "the companies' economic freedom" in relation to possible establishment of ceiling prices to favor the population.

The Central American country is under the effects of the oil price crisis, the US economic recession, and shortage of basic grains, due to mass buys by biofuel manufacturers.

Besides, it is the nation with greatest rates of inequality in the region, with little over 50 percent of its inhabitants suffering poverty and 17 percent in abject poverty.