Macro Analysis /

Mexico: Inflation 2021 – Reversal of pandemic distortions amid a weak economy

  • As mentioned recently, we expect year-end 2021 inflation at 3.7% y/y, following the 3.2% observed at the end of 2020

  • The core index would decline to 3.1% mainly due to slack, with the non-core at 5.4% with pressures from energy

  • Our view the call of a 25bps cut in the Feb-11 meeting, followed by two more drving the rate to 3.50% by YE21

Gabriel Casillas Olvera
Gabriel Casillas Olvera

Managing DirectorInvestor Relations Officer and Chief Economist

Francisco Jose Flores Serrano
Juan Carlos Alderete Macal
Alejandro Padilla Santana
15 January 2021
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