Mexico | The recent increase in inflation is transitory

Summary

Banco de México should not react to recent increases in inflation. In the absence of structural inflationary pressures, the central bank should continue to relax monetary policy.

Key points

• Key points:
• In the first half of August, inflation reached 4%, which is the upper limit of Banco de México's target range
• Inflation will be controlled and that this gives Banxico the opportunity to continue relaxing monetary policy

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