Mexican inflation seen slowing in February
FILE PHOTO: A man sells corn grains at a public market in Ozumba de Alzate, State of Mexico, Mexico, May 24, 2022. REUTERS/Edgard Garrido/File Photo
MEXICO CITY (Reuters) – Mexico’s inflation rate likely eased in February, a Reuters poll showed on Monday, reinforcing bets that the country’s central bank could lower its key benchmark interest rate as soon as this month.
A median forecast of 15 analysts predicted that the annual headline inflation rate would settle at 4.42% in February, down from 4.88% in January and continuing the downward trend that was briefly interrupted at the end of last year.
The closely watched core inflation index, which strips out volatile energy and food prices, is seen dropping to 4.62% in the month, its lowest level since June 2021.
Both rates, however, are still above the central bank’s target range of 3%, plus or minus one percentage point.
Last month the monetary authority, also known as Banxico, again held the benchmark interest rate at a historic high of 11.25% but hinted that a rate cut could be on the table in upcoming meetings.
A recent poll of economists by financial group Citibanamex showed that most estimate an initial rate cut to happen when Banxico’s board meets on March 21.
On a month-over-month basis, Mexico’s consumer prices were seen rising 0.11% in February, with core inflation up 0.49%.
Mexico’s national statistics agency will publish official inflation data for February on Thursday.
