Inflation expectations rise and fall for GDP, according to FocusEconomics survey

The inflation in mexico will register a variation of 4.3% this year in a slower economic environment, where GDP will show a 2.8% progress, according to the revised expectations of 48 brokers and financial strategists, collected by Focus Economics.

If the forecasts are correct, 2022 will be a second consecutive year with inflation outside the target and above the limit allowed by the Bank of Mexico (Banxico) of 4 percent. An expectation that also includes a fourth upward monthly adjustment.

Information contained in the LatinFocus Consensus Forecast monthly report of Focus Economics shows that the average number of strategists consulted is seeing a slowdown in growth, caused by a less dynamic US economy.

But they also believe that the brake of the Mexican economy It will continue to act from within, given the uncertainty of the business environment imposed by the series of legislative changes such as the one being discussed in Congress for the electricity sector.

The revised GDP growth forecast includes a second consecutive monthly cut from the 3% they forecast in October, showing that there is no expectation that the federal government’s budget expansion will be 4.1 percent , will not be achieved.

Over the inflation, it can be seen in the detail of the report that 25 strategists are a variation of the National Consumer Price Index (INPC) above 4%, which increased the percentage of experts who had this forecast in December, when 18 saw a variation far from the target.