Inflation in Mexico slowed down in the first half of September, though it stays above the target level in anticipation of a continued rise of the key interest rate by the central bank.
According to forecasts of 17 analysts, the average level of inflation is at the level of 8.71% in comparison to 8.77% recorded in the second half of August.
“Generally, the dynamics will mostly remain unfavorable, putting an additional pressure on goods, especially groceries, but with a moderate energy consumption, which we expect to have a positive impact on the price indices in the coming months”, – reported Grupo Financiero Banorte.
The Bank of Mexico is targeting an inflation rate of 3%, plus or minus one percentage point. In order to contain it, the bank has raised the benchmark interest rate by 450 basis points to the current level of 8.5% over the past 10 meetings on monetary policy.
The next bank’s decision is scheduled for September 29. According to forecasts, the interest rate is expected to remain on the level of 8.5%.