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Finamex See Next Monday’s Bi-Weekly CPI Dipping Below 7%

MEXICO
  • Finamex expect headline inflation for the 1st fortnight of January 2022 at 0.18%, with core and non-core inflations at 0.23% and 0.04%, respectively.
  • Accordingly, incidences of the core and non-core components in their headline inflation forecast are 0.17 and 0.01 percentage points, respectively.
    • Within the core component, they anticipate high increases in Food merchandises and a moderate increase in Education tuitions.
    • Within the non-core component, they expect an important reduction in Fruits and Vegetable prices, which is compensated with increases in Energy and Government fares prices.
  • Should these figures materialize, biweekly 12-month inflation would decrease from 7.26% in the second half of December to 6.91% in the first half of January. This, as core inflation goes down from 6.00% to 5.99% and non-core inflation decreases from 11.14% to 9.68% during the same period.
  • Finamex’s 2022 year-end inflation estimates are seen at 4.18 for the headline and 4.00 for core inflation.

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