AI Trader+

Inflation Growth Expected in Mexico's December Figures, Survey Suggests

Inflation Growth Expected in Mexico's December Figures, Survey Suggests

Inflation Trends in Mexico City

An opinion poll by Reuters on Wednesday unveiled potential inflation growth in Mexico's headline rate for the first half of December. Simultaneously, reports suggest the crucial core rate has likely extended its downward trend.

The Bank of Mexico's Hawkish Stance

If the anticipated mild acceleration in the headline rate occurs, it will echo an increase in the previous month. This eventuality momentarily put an end to the long-standing inflation cooling trend, thus reinforcing an assertive strategy at the national apex bank, Banxico.

The Predicted Headline Inflation Rate

According to the median projection from a group of 12 financial experts, the annual headline inflation rate for December's first fortnight could reach 4.36%. If realized, this inflation growth would mark the third consecutive biweekly period after hitting a record low since March 2021.

Core Index Predictions

The closely studied core index, after discounting the highly fluctuating energy and food prices, is forecasted to descend to 5.24% at the beginning of December. This drop represents the lowest level since October 2021.

Comparison with Previous Data

When compared to the prior fortnight, experts estimate that headline inflation edged up by 0.40%, and core inflation edged up by 0.50%.

The Central Bank's Approach

Last week, Banxico preserved the benchmark interest rate of Mexico at an all-time high of 11.25% for the sixth straight monetary policy meeting. The central bank stated that inflation deceleration efforts have been fruitful and hinted at a potential rate cut discussion early next year, albeit within a challenging environment.

Upcoming Inflation Figures Release

On Thursday, Mexico's official statistical body will disclose the official inflation figures for the first half of December.

AI Trader+