The general inflation of Mexico would have accelerated in February although it would be maintained within the target range of the Central Bank, a reuters poll showed on Tuesday, supporting the expectations that the Central Bank would reduce its key rate again at half a percentage point.
The median projections of 17 participants showed an year -on -year rate of 3.77% for the General Consumer Price Index, above January 3.59%, when it touched its lowest level in four years.
On the other hand, for the underlying inflation, considered a better parameter to measure the price trajectory because it eliminates high volatility products, estimates indicate that it would have moderated to 3.62%.
Only in February, prices would have grown 0.27% compared to the previous month, while for the underlying index an increase of 0.46% is expected. The data will be announced on Friday by the Statistics Institute.
Banco de México, which has an inflation goal of 3% +/– A percentage point, deepened last month the magnitude of its cuts to the funding rate by reducing it by 50 base points, after five sales of a quarter quarter last year, and said that forward it could consider similar adjustments.
Governor Victoria Rodríguez told Reuters days after the decision that the fight against price increase had entered into a new phase -after shooting in 2022 at levels not seen in more than two decades -, which would allow the Governing Board to continue cutting the referential rate.
Adding pressures to the authority to continue softening its monetary position, it was announced that the economy contracted 0.6% at the end of 2024, while throughout the year it recorded its worst performance from the pandemic.
According to a recent survey of the Citi Financial Group, a large majority of economists consulted awaits a new reduction of 50 basic points in the next rate of March 27.
With Reuters information.
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