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Business & Finance

Mexican inflation likely dips to 7-month low in December

  • If the estimate is confirmed, it would be the lowest rate of inflation since May, when the consumer price index stood at 2.84pc.
06 Jan, 2021

MEXICO CITY: Mexican annual consumer price inflation likely eased in December to its lowest level in seven months, staying within the central bank's target range, a Reuters poll showed on Tuesday.

The median forecast of nine analysts surveyed expected inflation to dip to 3.16pc from 3.33pc registered in November.

If the estimate is confirmed, it would be the lowest rate of inflation since May, when the consumer price index stood at 2.84pc.

Mexico's central bank last month held its benchmark interest rate unchanged at 4.25pc for the second consecutive meeting and said inflation expectations for the medium and long term remain stable at levels above 3pc.

The bank targets inflation of 3pc, with a tolerance range of one percentage point above or below.

In December, overall prices likely rose 0.40pc, while the annual core inflation rate was seen at 3.80pc, according to the survey.

National statistics agency INEGI will release the official consumer inflation figures for December on Thursday.

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