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MEXICO: Banxico’s Heath Says Inflation Outlook Clouded By Food Price Volatility

MEXICO
  • Banxico Deputy Governor Heath said that it’s uncertain how soon food price pressures will cool and give policymakers some relief on non-core inflation.
  • He said that inflation remains sticky largely due to the spike in food prices of just six products, adding that although these costs are expected to cool, the process will be uneven.
  • Meanwhile, persistent services inflation remains a challenge for policymakers.
  • While core inflation has slowed consistently, that trend is beginning to wane, he said, because of the increase in service costs.
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