Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
⏰ React to the Market Faster with Custom, Real-Time News Get Started
Mexico headline inflation seen speeding up in December, core index down: Reuters poll
© Reuters. A man sells corn grains at a public market in Ozumba de Alzate, State of Mexico, Mexico, May 24, 2022. REUTERS/Edgard Garrido/File Photo
MEXICO CITY (Reuters) - Mexico's headline inflation likely accelerated in December after slowing its pace for two straight months, a Reuters poll showed Friday, reinforcing bets that monetary policymakers will maintain a restrictive monetary policy to tame prices.
The median forecast of 11 analysts shows annual inflation at 7.85% in December, up from the 7.80% posted in November, but still below the record of 8.70% it reached in August and September.
Economists attribute December's outlook largely to higher prices for food items and carbonated beverages.
Inflation has blown past the Bank of Mexico's target rate of 3%, plus or minus one percentage point, prompting it to increase its key lending rate by 650 basis points to 10.50% during the current hiking cycle, which began in June 2021.
Banxico, as Mexico's central bank is known, is considering another interest rate hike at its next monetary policy meeting scheduled for Feb. 9, according to the minutes of its last board meeting.
The government said Friday it will issue a new decree for a temporary exemption on import tariffs for various items in an effort to pull the brakes on price increases.
Meanwhile, annual core inflation, considered a better gauge of the price trajectory since it excludes items of high volatility, was forecast to hit 8.35% in December, after peaking at 8.51% in November, its highest level in two decades.
In December alone, consumer prices are forecasted to have grown by 0.42% from the previous month, while the median projection for monthly core inflation was seen at 0.65%.,
Mexico's statistics institute will release inflation data for December on Monday.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.