Inflation is increasing as Mexico expects another interest rate reduction

Mexico’s annual inflation rate increased to the third consecutive month in April, showing official data Thursday, but it is within the target of Mexico’s bank, which opens the door next week to interest reduction.

National Statistical Agency has reported Inegi That annual title inflation reached 3.93% last month 3.80% in the month of March. Monthly inflation was 0.33%per month.

The annual reading was over 3.90% of the researchers and economists surveyed by Reuters and Bloomberg.

The annual inflation rate of excluding turbulent food and energy prices was 3.93%, which was 3.64% in March.

An annual inflation came later in February, March and April Title Rate reached four years of less than 3.59% in January.

In 2022, the annual headline rate rose to 8.7% in August and September. Mexico Bank (Panico) started the 21 -month -old monetary policy tightening cycle in June 2022, including a total of 725 base points, including 15 interest rates.

The central bank’s main interest rate rose 11.25% and was at that level a year ago A loosening cycle started in March 2024. Panico’s Benchmark rate is now 9% fixed 50-base-point cuts on both February And March.

The Central Bank’s ruling committee will hold its next monetary policy meeting on Thursday, May 15.

Bloomberg reported that in April, the inflation reading-4% of the bank’s 2% -4% of the target limit-another 50-footed-point cut may be kept in the “table”.

The latest data “Mexico Bank should allow Latin to reduce credit costs in the second largest economy of the United States,” said Reuters.

“… Although economic growth is not part of Panico’s mandate, researchers believe that US President Donald Trump’s huge fees from stimulating trade tensions are increasing the argument to facilitate monetary policy,” the news agency said.

Mexico’s economy avoided technical recession in the first quarter of the year, Grows 0.2% compared to previous three monthsAccording to preliminary InEGI data.

Mexico’s Deputy Bank Governor Jonathan Heath said on Wednesday that Mexico’s current economic situation would continue to reduce its major interest rates.

He said in a panorte bodgast The interest rate in the Federal Reserve in the United States, and the difference between that rate and buncico, will not have a higher impact on the second half of Mexico’s second half of the year.

Wednesday the Central Bank kept its interest rate limit without changing 4.25%-4.50%.

The significant difference between Mexico’s bank’s main interest rate and the central bank helped Mexican Peso for a long time against the US dollar, but last year, Peso weakened, weakened by a variety of factors, including a comprehensive victory of the ruling Monna’s party in last June elections. Congress’s approval for a controversial judicial reform Trump’s victory in the US presidential election last November.

This year Beso has been doing well, and at 11 am on Thursday, Mexico is praised for about $ 20.6 to $ 20.6 for the Green Pack from December 31 to 19.57.

Cheap fruit and vegetables, more expensive meat

Inki’s data shows that the price of fruit and vegetable prices fell by 2.45% per year on February, while the price of meat increased by 8.25%.

Processed foods, drinks and tobacco were more expensive in April than the same month last year, while prices for non -food products rose 2.4%.

Compared to April 2024, the services are 4.56% loving, while energy prices, including petrol and electricity, increased by 2.99% on year.

With reports from EconomistOvarian UniversalOvarian Bloomberg And Reoid