Inflation in Mexico has peaked
2022.12.05 12:59
Inflation in Mexico has peaked
Budrigannews.com – According to a poll conducted by Reuters on Monday, Mexico’s headline inflation likely continued to slow in November. As a result, the Bank of Mexico may opt for a less aggressive interest rate hike at its monetary policy meeting on December 15.
Inflation fell to 7.93 percent in November, down from 8.41 percent in October and the over two-decade high of 8.70 percent in August and September, according to the median forecast of 14 analysts.
The “Buen Fin” pre-Christmas offers and discounts on some goods and services were largely responsible for the anticipated ease in inflation, according to analysts.
However, annual core inflation, which excludes some volatile energy and food prices, was anticipated to reach 8.58 percent, a level not seen since August 2000. Banxico, as the Mexican central bank is known, continues to be a major concern.
Since the beginning of its current monetary policy tightening cycle in June 2021, Banxico has increased the benchmark rate by 600 basis points to its current level of 10%, with an inflation target of 3%, plus or minus one percentage point.
After four rate increases of 75 basis points each, private sector analysts anticipate that Banxico will raise its key rate by 50 basis points at its meeting on December 15.
Jonathan Heath, one of the more pessimistic members of the Banxico board, suggested toward the end of November that the hiking cycle might be coming to an end.
“We still intend to increase the rate, but not significantly, I believe.Additionally, “I believe we are approaching what may be the terminal rate,” he stated earlier.
Mexican consumer prices are expected to have increased by 0.70 percent in November alone, while the median projection for monthly core inflation was 0.52 percent.
On Thursday, November’s inflation data will be made available by Mexico’s statistics institute.
