EconomyBanxico admits increase in inflationary expectations for 2022

Banxico admits increase in inflationary expectations for 2022

The Bank of Mexico (Banxico) agreed to assess in its next decisions the magnitude of the increases to its key interest rate according to the prevailing circumstances, although it admits that there is an increase in inflationary expectations.

In its minutes of the most recent monetary policy meeting, the Governing Board of the Central Bank indicates that the expectations of general and subjacent inflation for 2022 increased again.

“The majority of the Board pointed out that the inflation of food merchandise registered the greatest increase, standing at 12.09% in July. One of them emphasized that this component has grown in double digits for five months and that the outlook is complex, even if food merchandise prices are excluded from the calculation of subjacent inflation, as is the case in the United States,” the document states.

Two weeks ago, Banxico raised its reference interest rate for the tenth consecutive time, to take it to a historical maximum of 8.5%, a unanimous decision and in line with market expectations, which expected another increase of 75 basic points (bp). in the cost of credits.

Inflation stood at 8.62% at the annual rate in the first half of August, more than expected.

Regarding domestic financial markets, most emphasized the resilience of the exchange rate despite episodes of volatility.

“He highlighted that the resilience of the national currency in relation to other currencies was due, in part, to the wide interest rate differential adjusted for volatility with respect to the United States. He also highlighted the country’s solid macroeconomic fundamentals,” the minutes said.

With information from Reuters

Will El Buen Fin be able to stop inflation?

If it wants to be successful, the sales season of El Buen Fin 2022 must have very attractive offers and discounts to make Mexicans consume and beat inflation.

Get rid of inflation! Gentera achieves triple-digit profits

Despite the good dynamism of its portfolio, the institution will show caution in 2023 due to the "January slope" and the possible defaults of its clients.

Arca Continental enters the distribution of Don Julio tequila

The Coca-Cola bottler will now test distillate distribution, while reinforcing Topo Chico's presence in the ready-to-drink category.

Inflation in Mexico picks up 8.5% in the first half of October

The rise in prices more than doubles Banxico's goal and indicates that the entity will continue to make credit more expensive at its next monetary policy meeting.

Inflation does not spare even beer; has its biggest rise in 12 years

The chela registered an increase of 11.2% during September of this year, the highest variation in 151 months; the most expensive 355-milliliter bottle was found in Cuernavaca Morelos.

More