Inflation tests Mexico's monetary easing strategy as prices spike in May

Inflation tests Mexico's monetary easing strategy as prices spike in May

Mexico’s annual inflation rate rose above 4% in the first half of May, reaching its highest level since December. The national statistics agency INEGI reported Thursday that the annual headline rate was 4.22% in the first 15 days of May, up from 3.93% across April. Inflation is now outside the Bank of Mexico’s target range of 3% plus or minus one percentage point. The annual headline rate in the first half of this month — above the 4.01% consens…

M. Hernández Inflation in Mexico accelerated in the first half of May and was placed at 4.22% per year, above the target range of the Bank of Mexico (Banxico), reported the INEGI. This rebound occurs after an increase of 0.09% in the National Consumer Price Index (INPC) compared to the fortnight [...]

The Bank of Mexico fulfilled its promise and prescribed another cut in the interest rate of 50 basis points in mid-May. The monetary decision was not a surprise, but rather a confirmation of the preference revealed by the bank in advance. With this decision, the monetary authority reduced the degree of restriction but the conditions remained slightly restrictive. The bank runs an unnecessary risk by accelerating the withdrawal of the monetary br…

The increase in the price of chicken, an essential protein for the Mexican diet and that in recent weeks has been increased by avian influenza, was what most stuck to the portfolio in the first fortnight of May, according to the information released by the National Institute of Statistics and Geography (Inegi).In the first fortnight of May, the price of chicken was increased 8.96% compared to the previous fortnight, which placed it as the generi…