Inflation Rate in Mexico Falls from Its 16-Year High Eric Martin - Bloomberg
go to original September 22, 2017

Mexico’s inflation slowed early in September, after reaching its fastest pace in 16 years last month, as price pressures on some fruits and vegetables abated.

Mexico’s central bank left its key interest rate unchanged last month at 7 percent, the highest level since 2009, after seven consecutive hikes, saying inflation will slow to its 3 percent target by the end of next year. The peso has rebounded from a record low in January, easing inflation pressures, on expectations the nation’s trade deal with the U.S. can be updated in a constructive way despite President Donald Trump’s threats to end it.

Analysts expect inflation to slow to 6.3 percent by year-end and 3.8 percent by the end of 2018, according to the median forecast in a survey published this week by Citibanamex. They also forecast the central bank to leave the key rate on hold until August of next year, when they will finally reduce it.

The peso rose 0.6 percent to 17.7807 per dollar in Friday morning trading.

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