Inflation in Mexico is in its sixth fortnight of deceleration

The median of the projections of 15 participants in a Reuters poll returned an annual rate of 6.28% for the National Consumer Price Indexr, its lowest level since October 2021, but still far from Banxico’s target of 3% +/- one percentage point.

For core inflation -considered a better parameter to measure the trajectory of prices because it eliminates high volatility products- the estimates indicate that it would also have fallen to 7.78%, its lowest level since July 2022.

At the end of March, Banxico increased the key rate by 25 basis points to leave it at a new maximum of 11.25%, moderating the pace of its current upward cycle, and warned that its next decision scheduled for May 18 would be based on the inflationary outlook. .

The most recent Citibanamex survey showed that 15 of 32 analysts consulted expect Banxico to keep the interest rate unchanged in May, to later begin to lower it.

Banxico has raised the funding rate by 725 basis points since mid-2021 after inflation began to accelerate.

Only in the first 15 days of April, prices would have decreased 0.12% compared to the previous fortnight, while for the underlying index an increase of 0.22% is expected, according to the Reuters poll.

The INEGI will disclose on Monday the behavior of the consumer price index during the first half of April.

With information from Reuters