Official data published on Friday, October 7th, showed Mexico’s consumer prices rose 8.7% from a year earlier, unchanged from August and below the 8.75% median estimate of economists surveyed by Bloomberg.
Core prices, which exclude volatile food and energy costs, remained a point of concern. s Banxico Hikes Rates
Policymakers in Mexico are extending borrowing cost hikes in response to the highest inflation prints in decades. Mexico’s Central Bank is getting help from a recent drop in some raw material costs, coupled with sub-par economic growth and government efforts to help tame consumer prices. Still, policymakers have flagged risks of more persistent cost-of-living increases.
What Bloomberg Economics Says
“Lower-than-expected headline inflation in September is a welcome surprise for Mexican policymakers, but provides little relief with core prices still on the rise. Upward pressure on Chilean prices remained high in September, but started to moderate. We believe inflation peaked in the third quarter in both countries.”
–Felipe Hernandez, Latin America economist
Source: El Financiero
Mexico Daily Post
