In 2024, Mexico’s economy faces substantial inflation challenges, as acknowledged by the Bank of Mexico in its recent policy meeting.
The bank points out an upward trend in risks within the inflation outlook. Despite some progress in reducing inflation, core inflation remains stubbornly high.
This situation poses a considerable risk. Banxico commits to a vigilant approach, closely watching inflationary pressures.
It will also analyze various factors that might influence the future direction and expectations of inflation.
To ensure a steady reduction in inflation to the target of 3 percent, Banxico emphasizes the need to maintain the reference rate at its current level for a foreseeable period.
In a decisive move during their December session, the Governing Board, with full attendance, unanimously agreed to keep the overnight interbank interest rate at 11.25 percent.
This consensus reflects their commitment to stabilizing the economy.
Looking forward, most board members anticipate that the local inflation will align with the official target by the second quarter of 2025.
Recent statistics, as of mid-December, show an annual inflation rate of 4.46 percent.
The Consumer Price Index (CPI) concluded the year 2022 at 7.82 percent, marking the highest peak in twenty years.
Factors like the global spread of the new coronavirus and other economic pressures have contributed to this surge.
This situation underlines the complex task Banxico faces in balancing economic growth with inflation control.
It also demonstrates the interconnectedness of global events and local economies.
As Banxico continues to navigate these turbulent waters, its actions will play a crucial role in shaping Mexico’s economic stability and growth.