MEXICO CITY (Reuters) – Mexico’s headline and core inflation rates will likely land below 4% in January, deputy central bank governor Jonathan Heath told newspaper Excelsior in a story published on Monday, adding that the bank does not need to exaggerate a restrictive posture.
The central banker’s forecast comes as some brace for upward pressure on prices, as the incoming U.S. president, Donald Trump, has threatened blanket tariffs on its southern neighbor’s exports to the United States in addition to mass deportations.
Both have the potential to stoke inflation.
Heath, one of four members of the central bank’s policy-setting board, also told the newspaper that his aim is to lower the Latin American economy’s inflation rate to the bank’s 3% target
In December, Mexico’s headline inflation rate eased to 4.21%, according to official data, which also saw the core rate tick up to 3.65%.
At the time, Heath hailed the evolution of prices as “good news,” as inflation slowed to its lowest rate since October 2023.
