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Mexico Consumer Prices (Dec. 2024)

The larger-than-expected fall in Mexico’s headline inflation rate, to 4.2% y/y in December keeps the door open for another 25bp cut at Banxico’s February meeting. But a lot will hinge on moves on the peso. Renewed downward pressure on the currency, which is likely if Trump follows through on his tariff threats, would probably prompt Banxico to pause its easing cycle.

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