Are you ready to take advantage of Mexico's changing economic landscape? According to a recent Multibagger poll, analysts predict that Mexico's annual inflation will continue to decrease in the first half of September. This could lead to the central bank cutting its benchmark interest rate once again in its upcoming announcement.
The median estimate from 11 analysts suggests that the overall consumer price index (CPI) is expected to fall to 4.73%, marking the fourth consecutive fortnight of decline. However, this figure still remains above the official target of 3%, plus or minus a percentage point.
Furthermore, the core inflation index, which excludes products with high volatility, is projected to decrease to 3.97%, its lowest level since February 2021. In the first 15 days of September, prices have seen a slight increase, with core prices rising by 0.23%, according to the poll.
The central bank's board previously cut its benchmark interest rate by 25 basis points in August, with expectations of further monetary easing. The upcoming monetary policy decision, set to be announced on Thursday, comes shortly after the Federal Reserve initiated a half-percentage-point rate cut, potentially paving the way for Mexico to follow suit.
Stay tuned for the release of consumer price data by the National Statistics Institute, INEGI, on Tuesday. As Mexico's inflation continues to moderate, this could present new opportunities for investors and consumers alike.
Analysis: Mexico's decreasing inflation and potential interest rate cuts could impact various sectors of the economy. Investors may find new opportunities in industries sensitive to interest rate changes, while consumers could benefit from lower borrowing costs. It's important to stay informed and consider how these developments may affect your financial decisions.