Mexico City, Jan. 18 - Mexico's government struck a deal with producers and retailers Thursday to reverse a surge in the price of tortillas that has pushed up inflation.
Tortillas are a staple of the Mexican diet and the recent price increases have put President Felipe Calderon's conservative new government under pressure.
Economy Minister Eduardo Sojo said corn flour producers, such as market heavyweight Gruma, agreed to limit the price of their product to 5 pesos (46 cents) per kilo.
Convenience stores and supermarkets, including Wal-Mart de Mexico, agreed to cap the price of tortillas at 6 pesos per kilo in their stores.
Mexico's Bimbo, the world's No. 3 bread maker, will reduce the retail price of its corn tortillas to no more than 8.50 pesos a kilo.
Prices for the thin corn patties have rocketed in January, climbing 25 percent to around 10 pesos a kilo in Mexico City and even more in other parts of the country.
Combined with increases for other basic foods, the sharp rise in tortilla prices has pushed inflation above the central bank's target range of 2 percent to 4 percent.