Inflation in Mexico is accelerating
2023.01.06 16:06
Inflation in Mexico is accelerating
Budrigannews.com – A poll conducted by Reuters on Friday indicated that Mexico’s headline inflation likely accelerated in December after slowing for two consecutive months. This confirms bets that monetary policymakers will maintain a restrictive monetary policy to control prices.
Annual inflation is expected to reach 7.85 percent in December, up from 7.80 percent in November, but still below the record of 8.70 percent set in August and September, according to 11 analysts’ median forecast.
The outlook for December is largely attributed by economists to higher prices for food and carbonated beverages.
During the current hiking cycle, which began in June 2021, the Bank of Mexico decided to raise its key lending rate by 650 basis points to 10.50% because inflation has surpassed the target rate of 3%, plus or minus one percentage point.
According to the minutes of its most recent board meeting, Banxico, or the Mexican central bank as it is commonly known, is considering raising interest rates once more at its upcoming monetary policy meeting on February 9.
In an effort to halt price increases, the government announced on Friday that it would issue a new decree granting a temporary exemption from import tariffs on a number of items.
In the meantime, annual core inflation, which excludes volatile items and is thought to be a better indicator of price trends, was expected to reach 8.35 percent in December, up from 8.51 percent in November, its highest level in two decades.
Consumer prices are anticipated to have increased by 0.42 percent in December alone, while the median projection for monthly core inflation was 0.65 percent.,
On Monday, the statistics institute in Mexico will publish December inflation data.
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