MEXICO CITY.- General inflation in Mexico would have decelerated in the first half of April, a reuters poll showed on Tuesday, reinforcing the prospect that the Central Bank will again cut its key rate at half a percentage point in its May decision.
The median projections of 10 participants showed a rate of 3.89% for the National Consumer Price Index (INPC), below 3.93% of the second half of March.
For underlying inflation, considered a better parameter to measure the price trajectory because it eliminates high volatility products, estimates indicate that it would have been located at 3.78%.
The prices would have grown 0.09% compared to the previous fortnight, while for the underlying index an increase of 0.21% is expected, according to the survey. The official data will be published on Thursday.
Bank of Mexico, which has an inflation goal of 3%, with a tolerance range of plus/less a percentage point, decreased last month its interest rate in 50 base points, its second consecutive reduction of that magnitude, and said that forward could consider similar cuts if the inflationary environment allows it.
His next announcement is scheduled for May 15 and although economic growth is not part of his mandate, analysts believe that the weak perspectives derived from world commercial tensions would add arguments to continue with the monetary relaxation cycle.
The International Monetary Fund estimated on Tuesday a contraction of 0.3% of GDP for this year, far from its projection of an advance of 1.4% projected in January.
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