21 | FEB | 2019
Photo: El Universal/Files

Mexico inflation highest since 2014 in November; rate hike seen

08/12/2016
11:22
-A +A
If the U.S. Federal Reserve raises rates next week, Mexico's central bank is widely expected to follow suit in its last monetary policy meeting of the year on Dec. 15

Mexico's annual inflation reached its highest in two years in November, and the data supported economists' expectations that the central bank will raise interest rates again to offset a weaker peso.

Consumer prices jumped 3.31 percent since November 2015, national statistics agency INEGI said on Thursday.

This was the highest since December 2014 and in line with the 3.32 percent that analysts estimated in a Reuters poll.

Last month Mexico's central bank raised interest rates for the fourth time this year, to 5.25 percent for the main rate, after the peso slumped on Donald Trump's win in the U.S. presidential election.

Mexican policymakers have been concerned that the weak peso was driving up inflation.

If the U.S. Federal Reserve raises rates next week, Mexico's central bank is widely expected to follow suit in its last monetary policy meeting of the year on Dec. 15.

In a Reuters poll, more than 100 economists forecast that the U.S. Federal Reserve would raise rates at its meeting next week.

Goldman Sachs said in a Thursday research note that Mexico's central bank was likely to raise interest rates by 25 to 50 basis points following the Fed decision if the peso remains weak.

Other economists share that view. Monthly inflation rose 0.78 percent in November on surging electricity prices, according to non-seasonally adjusted figures.

The core index, which strips out some volatile food and energy prices, gained 0.22 percent during the month
 

Mantente al día con el boletín de El Universal

 

Comentarios