Back

Weekly Report - 09 March 2017 (WR-17-09)

TRACKING TRENDS

MEXICO | Combating rising inflation. Mexico’s central bank (Banxico) has released the latest instalment of its monthly survey of local economists, which found that the consensus forecast is that the national inflation rate will reach 5.39% this year. The new consensus inflation forecast is higher than the 5.25% forecast made by surveyed economists in January. The increased forecast revision came after Banxico reported on 1 March that the inflation rate had reached 3.36% in 2016, coming in above the bank’s target of 3%. The Banxico report also showed that cumulative inflation in January reached 4.72% on the back of the petrol fuel price increases that came into effect at the start of the year. This has added to the significant inflationary pressures in Mexico stemming from the sharp depreciation of the Mexican peso against the US dollar since the election of Donald Trump as US president in November 2016. Indeed, on the back of these factors, the report notes that Banxico expects that the inflation rate will remain above 4% in 2017 and will only begin coming back to its 3% target by the end of 2018.

End of preview - This article contains approximately 380 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

LatinNews
Intelligence Research Ltd.
167-169 Great Portland Street,
5th floor,
London, W1W 5PF - UK
Phone : +44 (0) 203 695 2790
Contact
You may contact us via our online contact form
Copyright © 2022 Intelligence Research Ltd. All rights reserved.