Mexico: Banxico is left with less room to lower the rate in March

Inflation in the service sector is putting pressure on prices in Mexico. After the inflation data for the first half of January, which had a rebound and stood at 4.9% annually, analysts estimate that it is internal demand that will put in check the Bank of Mexico's task of bringing inflation to the target of 3%. The prices of foods such as tomatoes, green tomatoes and onions put pressure on the non-core indicator, that is, the component with which volatile prices are measured. "The problem is that the decline in inflation last year was due to the fall in non-core inflation and now it is likely that we will see core inflation have positive readings. It will add that inflation is above what we saw in recent months," said Alejandra Marcos, economist at Intercam. The expert highlighted that the risks for inflation in 2024 tend more upward than downward, which is why they estimate that the general indicator will end at 4.52% this year, a figure above the analyst consensus of 4%. ...