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Rising Tortilla Prices Could Cause Political Unrest in Mexico


Fearing political backlash, Mexico's government is promising citizens that it will do what it can to keep tortilla prices right where they are. According to Mexico's National Chamber for the Tortilla and Dough Industry, prices will rise 18 percent in the coming weeks.

The government, sensing troubling inflation and massive protests, is planning to offer financial support to offset the price of transportation and warehousing, according to BBC.

The high costs of corn and gasoline are causing the spike. Hording of corn by producers is also putting a strain on supply. Tortillas, being such a staple, have ability to influence Mexico's national economy. Bloomberg News reports that a 40 percent jump in tortilla prices would probably force the central bank to deliver a significant interest rate hike.

Can you think of a food staple for which an 18 percent rise in price would cause massive street protests in your neck of the woods? Is it surprising that food prices would have a direct impact on the bank's interest rates? What food would cause the government to intervene in the States?

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