Mexico’s Above-Target Inflation Signals Rate Hike This Week


Source: Bloomberg

Mexico’s annual inflation remained far above the central bank’s target ceiling in July, keeping pressure on board members to continue raising interest rates at Thursday’s monetary policy decision.

Consumer prices jumped 5.81% compared to a year earlier, slightly less than the 5.88% rise seen in June but more than economists’ median estimate for a 5.78% increase, the national statistics institute reported Monday. Monthly inflation accelerated to 0.59%, compared to the 0.53% reading recorded in June.


Mexico inflation hits record low in May, rate hike still eyed

6/9/15 Reuters

via Flikr user ‘Richie Rich’

Mexico’s annual inflation rate eased in May to a record low, pushed lower by summer electricity subsidies and contained by a sluggish economy, but the central bank is still expected to raise interest rates when U.S. borrowing costs move higher.

Inflation in the 12 months through May MXCPIA=ECI slowed to 2.88 percent, the national statistics agency said on Tuesday, below the 2.92 percent expected in a Reuters poll, and the 3.06 percent annual rate in April.

The annual rate was the lowest on record according to central bank data going back to 1970.

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Mexico Prices Advance More Than Forecast as Target Exceeded

08/22/14 Bloomberg

piggy bank with coinsMexican consumer prices rose more than analysts expected in the first half of August, keeping the annual inflation rate above the upper limit of the central bank’s target range.

Prices increased 0.19 percent in the two weeks, the national statistics institute said on its website today, compared with the 0.16 percent median forecast of 20 economists surveyed by Bloomberg. While the annual inflation rate fell to 4.07 percent, it remains above the 2 percent to 4 percent target range.

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Mexico annual inflation ticks up in June

07/09/14 Reuters

financeMexico’s annual inflation rate ticked up in June but remained below the central bank’s ceiling, boosting bets that policymakers will leave rates at an all-time low to support tepid growth in Latin America’s No. 2 economy.

Inflation in the 12 months through June was 3.75 percent, the national statistics institute said on Wednesday, below expectations of 3.78 percent in a Reuters poll and above the 3.51 percent annual rate registered in May.

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