Skip to main content

Banxico’s core inflation concerns overdone

The Mexican central bank’s recently released Q1 Inflation Report reiterated concerns about sticky core inflation. But we think these worries are overdone, and core inflation should fall back in the coming quarters. As such, we remain comfortable with our view for an easing cycle to begin in Q3, and expect more rate cuts than the markets are pricing in this year and next.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.