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What to Think About the Positive Inflation Figures?
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On Thursday, the National Institute of Statistics and Geography (INEGI) released inflation data for the first half of July. The number was surprising because annual inflation stood at 3.55 percent. The first question we must ask ourselves is whether the decline is permanent or temporary. The second is what the Bank of Mexico should do. I begin by showing how common it has been for Mexico to have inflation levels close to 3.5 percent or lower. Th…
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