Food will pressure core inflation until 2024

“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 expectations for economic growth 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%.