Mexico’s annual headline inflation rate for February moderated more than anticipated, reaching 4.40%, down from 4.88% in January, according to data from the national statistics agency INEGI. This lower-than-expected inflation figure is strengthening expectations that the Bank of Mexico (Banxico) might initiate a monetary easing cycle during its upcoming meeting on March 21. While inflation remains above the central bank’s target range of 3%, plus or minus one percentage point, recent signals from Banxico suggest a potential shift towards a rate cut to support economic recovery. Economists anticipate a gradual easing cycle, considering the persistence of services inflation.
Mexico’s february inflation rate eases, fueling expectations of central bank rate cut.
