Mexico | Good signs of inflation; Banxico rightly points to a pause

Summary

This week the inflation rate for the first half of April was announced. It was a good number that confirms that the disinflationary process in Mexico is underway.

Key points

• Key points:
• Headline inflation dropped -in year-on-year comparison- to 6.2% from 7.1% registered at the end of March, which reinforces that the 8.7% figure observed in September would have been the peak of this inflationary cycle.
• Moreover, core and services inflation, that had shown some stickiness are now declining.
• Banxico has concluded that the restrictive cycle has concluded, regardless of Fed actions. I think it’s the correct decision.

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