Latin America Economics

Mexico & Chile Consumer Prices (Aug.)

Latin America Data Response
Written by Capital Economics Economist

The third consecutive monthly rise in Mexican inflation was driven by higher energy inflation, and is unlikely to spook Banxico. Accordingly, assuming the peso holds up reasonably well between now and the next meeting, the Board is likely to leave rates unchanged at 7.75%. Elsewhere, the decline in Chilean inflation in August is unlikely to cause the central bank to postpone plans to hike rates before year-end.