The further jump in Mexican inflation in the first half of February, to 2.9% y/y, from 2.5% y/y over January as a whole, was due to a rise in food inflation, which is typically volatile and should prove temporary. Even so, with the central bank on high-alert for signs that a weaker currency will push inflation above their 3% target, today’s data increase the chances of another rate rise in the first half of this year.
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