Mexico Inflation Rose Slightly Less Than Expected in March

wp0}b6oh(9zv9y594oi1utti_media_dl_1.png Mexico's national statistics ageArticle content(Bloomberg) — Mexico’s annual inflation accelerated last month after the central bank resumed its easing cycle and marked up inflation forecasts with the Iran war pressuring energy costs globally.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentConsumer prices rose 4.59% in March compared to the same month last year, according to the national statistics institute. The reading came in below the 4.64% median estimate of analysts surveyed by Bloomberg and up from February’s 4.02% print.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentCore inflation, which excludes volatile food and fuel prices and it’s closely watched by the central bank, slowed to 4.45% from a year ago, compared to 4.50% in February, and below the 4.47% median estimate. The central bank targets 3% inflation, plus or minus one percentage point.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentTomatoes, airfares, as well as snack bars, diners, torta shops, and taco stands registered the largest price increases in March, while internet-telephone-TV packages, eggs, and pork all saw the steepest reductions.Article contentExpressing concern over a weakening economy amid mounting price pressures, the central bank at its March 26 meeting resumed monetary policy easing after February’s pause. Three board members, including Governor Victoria Rodriguez, backed the quarter-point cut to 6.75%, while two voted to hold at 7% for a second meeting.Article contentBanxico, as the bank is known, said it’s considering one additional rate cut at an unspecified time, while keeping close tabs on inflation and the evolution of external factors that could weigh on future moves, according the board’s post-decision statement.Article contentArticle contentRate OutlookArticle content“This print puts a June cut on the table,” said Marco Oviedo, senior strategist at XP Investimentos, in a note to clients. “May could be a difficult one, given the public criticism that the bank had recently.”Article contentOviedo highlighted that core inflation’s lower than expected print, with food and services performing well below the historical average, is good news for the central bank overall going forward.Article contentEarlier this year, policymakers revised up their inflation forecasts for the first three quarters of 2026, while maintaining guidance for inflation’s convergence to target in the second quarter of 2027.Article contentThough the war in Iran has added to inflationary pressures with the jump in crude prices, Banxico cited the conflict as a downward risk for the local economy.Article contentGabriela Siller, director of economic analysis at Grupo Financiero Base, said that the March print should lead Banxico to once again revise upwards its 2026 inflation forecast and adjust its monetary policy accordingly to regain credibility after prices have consistently been outside their target range.Article content“It’s very important that Banxico provide forecasts that are reliable and not significantly below market expectations,” she said. “It’s also important that it at least keep its interest rate unchanged in upcoming meetings.”Article content—With assistance from Rafael Gayol.Article content(Updates to add analysts comments starting in the seventh paragraph)Article contentTrending Doritos at US$7 a bag ended up costing PepsiCo billions Retail & Marketing BYD to open 20 car dealerships in Canada this year Autos Posthaste: How the U.S. dollar stole the Canadian dollar's petrocurrency thunder News Subscriber only. 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