MEXICO CITY — The government, business and labor have agreed to a renewal in August of the wage and price controls credited with reducing inflation, it was reported Sunday.
The Economic Growth and Stability Pact, which went into effect Feb. 29, 1988, has been extended several times. The August renewal will be the last, however, the reports said. Next year controls will be lifted, they said.
The government launched the controls to curb inflation that reached a record 159.2% in 1987. With the controls, consumer prices rose 51.7% in 1988 and less than 20% last year.
The reports said that when the pact is renewed, gasoline prices will go up 6%, but wages will remain the same. However, some reports said labor leaders are pushing for wages indexed to inflation.
Newspapers reported that consumer prices have increased 11.7% this year, while wages have remained constant. The government forecast inflation of 15.3% for the year.