Year-on-year inflation in Mexico in April, its highest level in 40 months

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The median of the projections of 14 specialists showed a rate of 6.01%, compared with 4.67% in March.

Mexico’s year-on-year inflation would have accelerated in April to its highest level since the end of 2017, well above the central bank’s target range, a Reuters survey showed, reinforcing expectations that the monetary entity will maintain this year in its current level the benchmark interest rate.

The median of the projections of 14 specialists showed a rate of 6.01%, compared with 4.67% in March.

If the estimate is confirmed, it would be the highest record of the consumer price index since 6.77% in December 2017.

At the end of March, the Bank of Mexico (Banxico) kept the cost of credit unchanged at 4%, citing an increase in expectations for inflation. Banxico has a permanent inflation target of 3% +/- one percentage point.

Analysts consulted in a Banxico survey published on Monday expect that the key rate will close 2022 at 4.25% and that this year it will remain intact.

Gobierno de AMLO ubica tasa de inflación en 3.84%, la mejor desde 2016

Only in April, prices would have grown by 0.25%, mainly driven by increases in food prices, according to the survey, while for the core index the median of the projections was 0.32%.

Regarding core inflation at the inter-annual rate, estimates indicate that it would be at 4.09%.

The statistics institute will disclose on Friday the behavior of the National Consumer Price Index during April. 

Source: forbes.com.mx

Mexico Daily Post