The high prices of food in Mexico will continue practically throughout 2023 and it will be until 2024 when a certain stabilization is registered.
BBVA Mexico considered this Monday that general inflation is already close to its peak, after the rate in August and September was 8.7%. For core inflation, it will continue to be under pressure in the last three months of the year and will cause the Bank of Mexico (Banxico) to raise the rate to 10.75% in 2023.
"There are still conditions of high uncertainty and taking food prices higher than expected, but we have already reached a ceiling in general inflation," said David Cervantes, senior economist at BBVA at a conference.
The financial institution estimated that in 2022 general inflation will close at 8.5%, in 2023 it will be 4% and until 2024 it will be possible to see a level of 3.7%.
BBVA highlighted that the inflation observed in the third quarter is the highest since the central bank set the objective of 3% with a variability range of 1% upwards or downwards.
Economic growth forecast lowered
BBVA Mexico lowered its economic growth expectations for 2023. While this year the economy is expected to grow 2%, for next year forecasts point to 0.6% from a previously estimated 1.6%.
By 2024, Mexico will grow at a rate of 1.8%.
