Mexico headline inflation seen rebounding in early December, core inflation to slow – Reuters poll
2:44 pm Tuesday, December 20th, 2022
MEXICO CITY (Reuters) – Mexico’s headline inflation is forecast to have rebounded in the first half of December after six fortnights of slowing, backing bets the Bank of Mexico will continue to hike interest rates, a Reuters poll showed on Tuesday.
The median forecast of 17 participants sees annual headline inflation picking up to 7.80% from 7.46% in the second half of November, while annual core inflation is seen dipping slightly to 8.34% from 8.37% in the previous two-week period..
The core index, considered a better measurement to track prices as it strips out volatile food and energy products, is forecast to have climbed 0.56% in the first 15 days of the month compared to the previous half-month period.
Meanwhile, monthly headline inflation is expected to have risen 0.40% in the period.
The forecasts keep annual inflation far above the Bank of Mexico’s target of 3%, plus or minus one percentage point. Last week, the central bank raised its key rate for the 13th consecutive time in the current cycle to 10.50%, underscoring that at least one more increase would be necessary.
Banxico, as the central bank is also known, is set to announce its next monetary policy decision in February.
Mexico’s statistics institute will release inflation data for the first half of December on Thursday.
(Reporting by Noe Torres; Additional reporting by Indradip Ghosh in Bengaluru; Writing by Kylie Madry; editing by Grant McCool)
