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CPI keeps pressure on both AMLO and Banxico

MEXICO
  • CPI data came in broadly mixed – but well within range of expectations. CPI: M/M 0.54% vs. Exp. 0.58%, Y/Y 7.68% vs. Exp. 7.73% while core CPI: M/M 0.78% vs. Exp. 0.74%, Y/Y 7.22% vs. Exp. 7.18%.
  • The data will keep pressure on AMLO’s government to push through measures to curtail the rise in prices, although the President will be pointing toward the agreement struck last week with leading companies in Mexico to cap prices on essential and basic products.
  • AMLO’s daily presser begins in just under an hour. The data also comes ahead of Thursday’s Banxico decision, at which the bank are seen raising rates by 50bps (MNI preview due tomorrow).

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