EconomyMexicans will wait longer to feel lower inflation

Mexicans will wait longer to feel lower inflation

Mexicans will have to wait longer to see and feel inflation stabilize dramatically.

The price increase for the first 15 days of October will be 8.6% at an annual rate, a level similar to that of the same period last month, which reinforces expectations that the Bank of Mexico (Banxico) will continue to make credit more expensive.

A survey by the Reuters agency indicates that the median of the projections of 15 participants showed an annual rate of 8.62% for the National Consumer Price Index (INPC), practically the same as the rise of 8.64% in the second half of September.

Banxico, which has a permanent inflation target of 3% +/- one percentage point, has increased the benchmark rate by 525 basis points (bp) in its last 11 monetary policy meetings to its current level of 9.25%.

His next decision is scheduled for November 10 and analysts anticipate a new increase of 75 basis points, according to a survey released by the financial group Citibanamex. For the end of the year, the projection is of a rate level of 10.50%.

As for the underlying component, seen as a better parameter to measure the trajectory of prices because it eliminates high volatility products, estimates indicate that it would have advanced by 8.31% at an annual rate.

Only in the first 15 days of October, consumer prices would have grown by 0.52% compared to the immediately previous fortnight, while an increase of 0.36% is expected for the core index, according to the survey.

The National Statistics Institute will release the price index for the first half of October on Monday.

With information from Reuters

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