Home Economy Inflation in Mexico stays high in early April

Inflation in Mexico stays high in early April

Mexican inflation likely slowed very slightly during the first half of April, but remained well above the central bank’s target, a Reuters poll showed on Wednesday, reinforcing bets the monetary authority will continue raising interest rates.

The median forecast of 10 analysts surveyed was for inflation to reach 7.60%, marginally down from 7.62% in the second half of March.

Core inflation, which strips out some volatile food and energy items, was seen climbing to 7.06%, its highest level since January 2001.

The Bank of Mexico, which targets inflation of 3%, with a one percentage point tolerance range above and below that, has increased the benchmark rate by 250 basis points in its last seven monetary policy meetings to 6.50%.

Its next decision is scheduled for May 12.

Analysts have forecast the lending rate could end the year at 8%, according to the central bank’s latest monthly poll.

Compared to the previous two weeks, Mexican consumer prices are predicted to have risen by 0.07%, with core prices seen advancing 0.34%, the poll showed.

Mexico’s national statistics agency will publish consumer price index data for the first 15 days of April on Friday.

Source: Reuters

Mexico Daily Post

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