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May 6, 2022
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Inflation in Mexico refuses to yield in April

Inflation in Mexico refuses to yield in April

For core inflation, considered a better parameter to measure the trajectory of prices because it eliminates highly volatile products, the survey carried out by the Reuters agency anticipates a rate of 7.17%, also the highest since January 2001.

The Bank of Mexico has increased the reference rate by a total of 250 basis points in its last seven monetary policy meetings to its current level of 6.5% .

Its next decision is scheduled for Thursday, May 12, and analysts expect a further 50 basis point rate increase, following in the footsteps of the Federal Reserve (Fed) in the United States.

The rate increase would also go against the wishes of President López Obrador, who this week presented a package to combat inflation.

The president then said that he did not want the central bank to raise the interest rate since that would limit the growth of the Mexican economy.

The package presented by the federal government to counteract inflation is estimated to have a moderate and low impact on food prices in the short term.

With information from Reuters



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