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Economic Research

Mexico’s Inflation Still Contained

RGE expects Mexico’s headline and core inflation to increase by 0.28% 2w/2w and 0.27% 2w/2w, respectively, in the first half of January, bringing the respective yearly readings down to 4.07% from 4.4% in December and to 3.49% from 3.61%. Higher regulated prices likely pushed non-core inflation up. Meanwhile, high commodity prices likely continued to hurt processed food prices while seasonal factors affecting education should push core inflation up. Needless to say, a negative output gap and strong currency should ease overall inflation pressures. The central bank temporary target[...]

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