Mexico’s Inflation Outlook

MEXICO CITY (Reuters) – Mexico’s headline and core inflation rates are expected to remain below 4% in January, stated deputy central bank governor Jonathan Heath in an article published by Excelsior on Monday. He mentioned that the bank does not need to adopt an excessively restrictive stance.

This forecast comes as concerns grow regarding potential upward price pressures, particularly following announcements from incoming U.S. president Donald Trump about imposing blanket tariffs on Mexican exports and initiating mass deportations, both of which could contribute to inflationary pressures.

Heath, who is one of the four members of the central bank’s policy-setting board, aims to reduce the inflation rate in the Latin American economy to the bank’s target of 3%.

In December, Mexico’s headline inflation rate decreased to 4.21%, while the core rate slightly increased to 3.65%. Heath referred to the recent changes in prices as “good news,” noting that inflation has slowed to its lowest level since October 2023.