The national flag flutters atop the Bank of Mexico building in downtown Mexico City. PHOTO: REUTERS/Edgard Garrido
Mexico’s annual inflation rose during the first half of September, the national statistics agency said on Thursday, above forecasts and prompting expectations of a new rate hike.
By mid-month, consumer prices accelerated 0.42% to reach annual inflation of 5.87%, already edging above the 5.59% clocked for August.-
The closely watched core price index, which strips out some volatile food and energy prices, climbed 0.31% in early September to reach 4.92%, the highest level since late 2017, according to data from the statistics agency INEGI.
The acceleration in the first half of September was above analyst expectations that annual inflation would rise to 5.72%, according to a Reuters poll of economists on Sept. 20.
Consumer prices have been edging down since April, when inflation stood at 6.08%, but are still far from the central bank’s target rate of 3% plus or minus one percentage point.
The renewed acceleration could prompt the Bank of Mexico to continue its tightening cycle at its meeting next week, according to Nikhil Sanghani, an economist for Capital Economics.
“(Banxico) has indicated that it will continue to hike rates in the face of above-target inflation to prevent expectations from rising,” Sanghani said in a note.
“We still think it will move slowly, with another 25bp hike to 4.75%,” he said.
Comments
more recommended stories
State government announces inauguration date for new Parque La Plancha: Mérida’s “Central Park”Mérida’s Gran Parque La Plancha is.
Spaniard who travels the world by bicycle with his dogs makes a stop in YucatánFour years ago, Miquel Sorell had.
It’s official! The Merida Marathon will take place on Sunday, January 8, 2023Marathon Merida Banorte Once again, the.
Wakanda Forever” actor to give presentations in MéridaJosué Maychi, the actor from Campeche.
Married couple’s pickup truck overturns and ends up catching fireA young man and his pregnant.
VivaAerobus leaves more than 120 passengers stranded at Merida airportDue to bad weather, VivaAerobus cancelled.
Subject arrested as he was trying to get hit by a passing car on Paseo de Montejo arrestedAgents of the Secretary of Public.
Yucatecan Maya writer receives Award for Indigenous Literature of the Americas at FIL GuadalajaraLiterature has the power to give.
25 year-old man choked to death in restaurant in northern MeridaA young man, 25 years old,.
Enjoy the ‘Paseo Navideño de las Flores’ with new venues in YucatánAs part of the free options.
This government has already suspended a lot of government lending programs, and it is now raising interest rates to fight off inflation, but will make borrowing money even more expensive. As such, the economy will continue to shrink. Tough times are ahead.