Inflation accelerated in the first month slightly above expectations, with which the general index stood at 7.91% per year, almost double Banxico’s target.
The underlying, that is, the one that eliminates the most volatile prices, advanced 8.45%, which has become a concern for the central bank, which has raised its reference rate by 700 basis points since mid-2021.
The head of state reiterated that in his opinion the central bank should deal with economic growth in addition to trying to keep prices at bay.
In its statement this Thursday, Banxico admits that the “disinflation” process is slower than expected, forcing it to adjust its expectations regarding price increases for the following months.
With this, Banxico forecasts that inflation will return to its target range of 3% +/- one percentage point until the second quarter of 2024.
As far as this year is concerned, the entity governed by Victoria RodrÃguez, prices will be above 5% at least until next September.
With information from Reuters
