Mexico Inflation Ticks Higher in Line With Banxico Forecasts
Mexico's annual inflation accelerated roughly in line with economists' forecasts, holding near the central bank's estimates and keeping chances of a sixth straight interest rate cut in play. Core inflation, which excludes volatile items such as food and fuel, came in at 3.63%, a touch above both the prior reading and median estimate of 3.61%. The central bank has been actively managing inflation, cutting interest rates to maintain price stability.
- Banxico's dovish stance at its last meeting has created a narrative that it is unwilling to tighten monetary policy further, which may be a factor in keeping inflation within the target range.
- How will the ongoing economic slowdown and private investment faltering impact Mexico's growth prospects for 2025, especially with the central bank's revised forecast of 0.6%?