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Mexico inflation likely eased in first half of September - Reuters poll

Published 09/20/2023, 02:37 PM
Updated 09/20/2023, 02:42 PM
© Reuters. FILE PHOTO: Customers walk past a fruit stall at a street market, in Mexico City, Mexico December 17, 2021. REUTERS/Luis Cortes/File Photo

MEXICO CITY (Reuters) - Mexico's headline inflation likely eased in the first half of September while remaining above the official target, a Reuters poll showed on Wednesday, suggesting the central bank could hold its historically high interest rate for some time.

A median forecast of 13 analysts estimated an annual headline inflation of 4.48% for the first two weeks of the month, the lowest level since March 2021.

Core inflation, which strips out highly volatile products, saw an analyst estimate of 5.76% for the same period from a year earlier, the lowest level since November 2021.

Analysts estimated that headline inflation rose 0.29% compared to the previous two weeks, while core inflation rose 0.25%.

© Reuters. FILE PHOTO: Customers walk past a fruit stall at a street market, in Mexico City, Mexico December 17, 2021. REUTERS/Luis Cortes/File Photo

Mexico's central bank, known as Banxico, opted last month to maintain its benchmark interest rate at a record high of 11.25% for the third consecutive time, warning it could be necessary to hold it for some time to reach the official 3% inflation target.

The bank began raising rates in mid-2021, raising it by a total of 725 basis points by May, when it paused the cycle.

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