A Reuters poll showed, on Monday, that inflation in Mexico may curb its upward trend during the first half of September, although it is likely to remain above the target level, maintaining expectations that the central bank will continue to raise the key interest rate. .
The median forecast of 17 analysts had forecast annual inflation at 8.71%, down from 8.77% in the second half of August, when it reached its highest level since late 2000.
“The dynamic will continue to be mostly unfavorable, with additional pressures on commodities – especially food – despite the energy moderation, which we expect will have positive effects on price results in the coming months,” Grupo Financiero Banorte said in a report.
Banxico, as the Bank of Mexico is known, targets inflation at 3% plus or minus one percentage point and has raised the benchmark interest rate by 450 basis points during the last 10 monetary policy meetings to its current level of 8.5%.
The next bank decision is scheduled for September 29.
Annual core inflation, which strips out some volatile food and energy prices, is expected to reach 8.28% in the first month.
Mexican consumer prices are estimated to have risen 0.37% in the first half of September compared to the previous half, with core inflation rising 0.44%, according to a Reuters poll.
Mexico’s national statistics agency INEGI will publish consumer price data for the first half of September on Thursday.