Why is Mexico considering a tax on red meat?

Mexico is considering a tax on red meat and processed meats to reduce consumption,improve public health outcomes,and promote environmental sustainability.

How much could a red meat tax reduce consumption in Mexico?

A study suggests that a 10 percent increase in the price of processed meat could reduce its consumption by 8.3 percent, while a similar increase in red meat prices could decrease demand by 7.9 percent.

What did Mexico do in 2023 regarding food sustainability?

In 2023, Mexico incorporated sustainability criteria into its national food guides, recommending reduced red meat consumption and avoidance of processed meats.

How can mexico mitigate inequalities caused by a red meat tax?

To prevent aggravating inequalities, part of the tax revenue could be allocated to subsidies or vouchers for healthy foods, ensuring that nutritional alternatives are affordable.

What other food-related taxes has Mexico implemented?

Mexico previously implemented a tax on sugary drinks in 2014, demonstrating a history of using fiscal policy to address public health concerns related to diet.

What is the potential impact of a red meat tax on public health and sustainability goals in Mexico?

A red meat tax presents an opportunity for Mexico to together achieve its public health and sustainability goals by encouraging healthier and more sustainable food choices.

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Q: Who is most affected by increased meat prices in Mexico?

Lower-income households are most affected by rising meat prices, even tho they already consume less meat than higher-income groups. They tend to replace meat with nutritious, accessible foods like legumes or seafood.

Business

Silver Rebound: Price Surges to $39/Ounce Amidst Gold Alternatives & Trade Concerns

by Priya Shah – Business Editor July 14, 2025

written by Priya Shah – Business Editor

Here’s a breakdown of the provided text, focusing on the price of silver and its influencing factors:

Silver’s Price Surge and Influencing Factors:

Significant rise: Silver has experienced a ample increase in price, reaching a maximum of 14 years.
Investor Alternatives: Investors are seeking alternatives too gold, which is trading at an almost record high price.
Increased Demand & Restricted Supply: Higher demand for silver has led to a restriction in its physical supply.
Cash Price: Silver in cash rose by up to 1.9% on monday, exceeding $39 per ounce, following a 4% rebound the previous week.
High Borrowing Cost: The annualized implicit cost of borrowing silver has surpassed 6%, a significant increase from the typical rate near zero.
Physical Market Pressure: The growing appetite for silver is putting pressure on the physical market in London, where a large portion is held in exchange-traded funds (ETFs). This means it’s not readily available for loans or purchases.
ETF Growth: Since February, the volume of silver-backed ETFs has increased by approximately 2,570 tons.
Silver vs. Gold: silver is outperforming gold, causing the gold-to-silver ratio to decrease. However, silver is still considered relatively cheap. Currently, about 86 ounces of silver are needed to buy one ounce of gold, compared to the 10-year average of 80.
Analyst Opinion: Priyanka Sachdeva, an analyst at Phillip Nova Pte Ltd., attributes silver’s demand to the threat of trade wars and gold’s high price, making silver a more accessible alternative. Trade Policy Concerns: Concerns about American commercial policy are also driving up the price of metals. Mexico,a major silver producer and supplier to the US,faces a potential 30% tariff. While silver is excluded from current trade agreements, there are worries about this exemption being threatened.
Price Differential: The difference between spot prices in London and September futures in New York has been unusually wide, similar to earlier in the year when trade policy concerns led to increased shipments of gold and silver from London to the US.This price differential narrowed on Monday.
Year-to-Date Performance: Silver has risen 35% this year, outperforming gold’s 28% gain.
Industrial Uses: Beyond being a safe-haven asset, silver has industrial applications, especially in solar panels.
Market Deficit: The market is projected to be in deficit for its fifth consecutive year,according to The Silver Institute.

Silver Price on Monday, July 14th:

Current Price: Silver remained practically unchanged at $38.46 per ounce at 10:24 am in New York, after having previously risen by up to 1.9%.

Gold Price on Monday, july 14th:

Current Price: Gold fell by 0.2% to $3,347.81 after a 0.6% increase the previous week.
* Drivers for Gold: Gold’s price has been boosted by purchases of safe-haven assets due to increased geopolitical conflicts and trade tensions, as well as by central bank purchases.

July 14, 2025 0 comments

News

Mexico Taco Tax: Will Your Tacos Get More Expensive?

by Chief editor of world-today-news.com June 28, 2025

written by Chief editor of world-today-news.com

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Mexico Considers Tax on Red Meat to Improve Public Health and Sustainability

Table of Contents

Mexico Considers Tax on Red Meat to Improve Public Health and Sustainability
- Potential impact of a Red Meat Tax
- Sustainability and Public Health

Mexico is exploring a potential tax on red and processed meat as a strategy to reduce consumption, enhance public health, and foster environmental sustainability. The proposal stems from a study conducted by the University of Edinburgh and mexico’s National Institute of Public Health (INSP) [[1]], highlighting the potential benefits of fiscal measures in shaping dietary habits.

Potential impact of a Red Meat Tax

The study, published in the journal *Plos One*, suggests that a 10 percent increase in the price of processed meat could lead to an 8.3 percent decrease in its consumption. Similarly, a 10 percent rise in red meat prices could result in a 7.9 percent drop in demand. These findings indicate that taxation could be an effective tool for curbing meat consumption in Mexico.

Did You No? Mexico’s national food guides already reccommend reducing red meat consumption and avoiding processed meats, reflecting a growing awareness of the health and environmental impacts of these foods.

Sustainability and Public Health

Researchers emphasize that reducing meat consumption is crucial for addressing climate change and ensuring sustainable resource use.

June 28, 2025 0 comments

Business

Interest Rates Held Steady: 2 Cuts Forecast for 2024 | El Financiero

by Priya Shah – Business Editor June 19, 2025

written by Priya Shah – Business Editor

Federal Reserve Holds Steady on Interest Rates, Hints at Possible 2025 Cuts

Table of Contents

Federal Reserve Holds Steady on Interest Rates, Hints at Possible 2025 Cuts

Washington, D.C. – The Federal Reserve (fed) has decided to hold interest rates steady, remaining in a target range of 4.25%-4.5%, while suggesting that two rate cuts may occur in 2025. The decision, revealed on Wednesday, june 19, 2025, comes amid ongoing economic uncertainty and revised projections for inflation and unemployment.

Key Takeaways from the June 2025 FOMC Meeting

The Federal Open Market Committee (FOMC) voted unanimously to maintain the current federal funds rate, a level that has been consistent throughout the year. While the median expectation remains two rate cuts in 2025,several officials have adjusted their forecasts,with seven now anticipating no cuts this year,compared to four in March.

Did You Know? The federal funds rate is the interest rate banks charge each other for the overnight lending of reserves. The Fed influences this rate through monetary policy [[3]].

The Fed’s decision reflects a cautious approach, as policymakers await further clarity on the economic impact of President Trump’s policies, especially concerning tariffs. The central bank acknowledged that uncertainty about economic perspectives has decreased, but remains elevated.

Updated Economic Projections

Alongside the interest rate decision, the Fed released updated quarterly projections, the first since President Trump announced tariffs on several of the United States’ buisness partners. These projections indicate a shift in the economic outlook:

Inflation: The median inflation estimate for the end of 2025 has been raised from 2.7% to 3%.
Economic Growth: The growth forecast for the year has been reduced from 1.7% to 1.4%.
Unemployment: An unemployment rate of 4.5% is now expected by the end of the year, slightly higher than previous estimates.

These adjustments suggest a more challenging economic habitat than previously anticipated, with rising inflation and slower growth posing potential headwinds.

Pro Tip: Keep an eye on the H.15 release from the Federal Reserve Board for daily updates on selected interest rates and constant maturity yields [[1]].

Impact of Tariffs on Monetary Policy

Fed officials and economists anticipate that the increased use of tariffs by the government will impact economic activity and exert upward pressure on inflation. This perspective aligns with market expectations before the announcement, influencing considerations for future interest rate adjustments.

jerome Powell, Chairman of the Fed, is scheduled to hold a press conference at 2:30 pm in Washington, where investors will be closely watching for signals on how the authorities interpret the changes in Trump’s policy and what conditions could justify an adjustment of interest rates in the coming months.

Federal Funds rate History

The federal funds rate is a key tool used by the Federal Reserve to influence the economy. it is the target rate that the Federal Reserve wants banks to charge one another for the overnight lending of reserves. The Fed can influence this rate by buying or selling U.S. government securities in the open market to add or drain reserves from the banking system.

Date	Federal Funds effective Rate
1954-07-01	0.80%
1954-08-01	1.22%
1954-09-01	1.07%
…	…

Historical data on the federal funds rate can be found at the Federal Reserve Bank of St. Louis (FRED) [[2]].

Looking Ahead

The Federal Reserve’s decision to hold interest rates steady while signaling potential cuts in 2025 reflects a delicate balancing act. Policymakers are navigating a complex economic landscape, weighing the risks of rising inflation and slower growth against the potential impact of government policies, particularly tariffs.

What impact do you think the Fed’s decision will have on the stock market? How will these potential rate cuts affect your personal finances?

Evergreen Insights: Understanding the Federal Reserve’s Role

The Federal Reserve System, often referred to as the Fed, is the central bank of the United States. It was created by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. The Fed’s primary responsibilities include conducting the nation’s monetary policy, supervising and regulating banking institutions, maintaining the stability of the financial system, and providing financial services to depository institutions, the U.S.government, and foreign official institutions.

Monetary policy involves managing the money supply and credit conditions to influence interest rates and inflation. The Fed uses various tools to implement monetary policy, including the federal funds rate, the discount rate, and reserve requirements. By adjusting these tools, the Fed can influence the overall level of economic activity and prices.

frequently Asked Questions About Interest Rates

What are interest rates?: Interest rates represent the cost of borrowing money. Thay are typically expressed as an annual percentage of the principal amount.
How do interest rates affect the economy?: Interest rates play a crucial role in influencing economic activity. Lower interest rates encourage borrowing and investment, leading to increased spending and economic growth. Higher interest rates, conversely, discourage borrowing and investment, helping to curb inflation.
Who sets interest rates in the United States?: The Federal Open Market committee (FOMC), the monetary policymaking body of the Federal Reserve System, sets the federal funds rate, which influences other interest rates throughout the economy.
What is the prime rate?: The prime rate is the interest rate that commercial banks charge their most creditworthy customers. It is often used as a benchmark for other interest rates, such as those on mortgages and credit cards.

Disclaimer: This article provides general financial information and should not be considered financial advice. Consult with a qualified financial advisor before making any investment decisions.

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June 19, 2025 0 comments