The firm anticipates an increase in inflation in October
The US firm Moody's warned that inflation in Mexico will close this year at around 4,2%, thus failing to meet the target of 3% with a variation of one percentage point set by the central bank.
Moody's analysis department based its forecast on the 0,62% inflationary rebound in the first half of September, plus "the realignment of private prices that is on the horizon and the seasonal increases that traditionally occur in December."
The rating agency noted that with this result, presented in a report, the Bank of Mexico's projection of maintaining "decreasing inflation by the end of the year" is dashed.
On the contrary, he warned that in September and October year-on-year inflation will approach 4,5%, which "poses a serious threat to already deteriorating expectations and puts pressure on monetary policy."
Moody's noted that year-on-year inflation in the first half of September stood at 3,99%, "exactly at the upper limit of the inflation target," so by the end of the month this indicator will be around 4%.
On the other hand, an increase in inflation is expected in October due to the end of summer electricity rates in some states, which could bring year-on-year inflation to 4,5%.
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