Private sector specialists anticipate annual inflation of 6.67% this year, which incorporates nine upward monthly revisions, from the 3.70% they had in July 2021, reveals the survey of the Bank of Mexico (Banxico).
The expectation is above last month’s forecast, which was 5.86% and shows that the market expects Mexico to experience a second consecutive year with inflation out of range allowable +/-1 percentage point above the 3% punctual.
In fact, they identified inflationary pressures as the biggest obstacle to growth with 16% of mentions.
The specialists projected that the mexican economy it will register a growth of 1.73% this year that shows a fourth downward revision from the forecast of 2.79% assumed in November and December; It clearly exceeds the rate of 1.83% that was still anticipated last month and the new expectation is the lowest collected for 2022 in at least 12 months.
According to the results, to try to order the price pressure, the Banxico It will maintain the rate hike policy to leave it at 8.36 percent at the end of the year.
If his forecasts are correct, the Mexican economy would already be in a process of stagflation, as described last week by the largest association of world financial institutions, the Institute of International Finance (IIF), an event that occurs when economic activity fails to grow and even so there is upward pressure on inflation.
Stage that to say of the German Finance Minister Christian Lindner “It can very quickly turn into a much more serious stability crisis, capable of fueling the impoverishment of many people.”