The drop in Mexican inflation in the first half of the month suggests that the sharp fall in the peso is still having little impact on domestic price pressures. While the recent sell-off in the currency might spook some members of Banxico’s MPC, today’s inflation data reinforce the idea that Mexico’s tightening cycle will be more gradual than most expect.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.