Inflation Mexico would have accelerated above 6.80% in the 1st half of November

File photo. People at the Jamaica Market in Mexico City, Mexico December 24, 2020. REUTERS / Gustavo Graf

MEXICO CITY, Nov 22 (Reuters) – Mexico’s year-on-year inflation would have more than doubled the official target again in the first half of November, a Reuters poll showed on Monday, reinforcing expectations that the central bank would raise its rate of interest again. benchmark interest next month.

The median of the projections of 13 specialists yielded a rate of 6.84% for biweekly interannual inflation, compared to that of the second half of October, of 6.36%. If the projection materializes, it would be the highest record since December 2017, when it was 6.85%.

Regarding year-on-year core inflation, the survey anticipates a rate of 5.40%, which would be its highest level since April 2009.

Banco de México (Banxico) this month raised its benchmark interest rate by 25 basis points (bp) for the fourth time in a row to 5%, and raised its expectations for inflation at the end of this year.

Banxico’s next monetary policy announcement, the last of a total of eight for the year, is scheduled for December 16. Banxico has a permanent inflation target of 3% +/- one percentage point.

Only in the first 15 days of November, consumer prices would have increased by 0.50% compared to the immediately previous fortnight, while an increase of 0.03% is expected for the underlying index, according to the survey.

The fortnightly increase in the National Consumer Price Index (INPC) would have been driven by price increases for some agricultural products and electricity rates.

The national statistical institute will disclose on Wednesday the behavior of the price index during the first half of November.

(Report by Miguel Angel Gutiérrez in Mexico City. Additional report by Gabriel Burín in Buenos Aires)

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