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Latin American Economy & Business - June 2017 (ISSN 1741-7430)
Mexico’s inflation on the rise: something to worry about?
Mexico’s annual inflation rate rose to 6.17% in May, the highest in over eight years. On 18 May, before the inflation data was released, the Banco de Mexico (Banxico, central bank) had again tightened interest rates, raising the benchmark rate by 25bps to 6.75%. Analysts are divided as to whether this is part of a worrying vicious circle or whether it is no more than a passing spike in an economy that is otherwise showing signs of resilience.
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