Inflation peak to peak in Q3 2022: Banxico

He assured that annual headline inflation will peak in the third quarter of 2022. Gallus Borgiadeputy governor of Bank of Mexico.

From there, it is expected to fall to get closer to its target by the first quarter of 2024, he said.

He added that going forward, it should be observed that lower pressures (such as the recent revision of commodity prices and improvements in supply chain disruptions) are being transferred to consumer prices in Mexicohe said in an interview with Citibanamex.

However, he acknowledged that the balance of risks is still skewed to the upside, as maintaining core inflation is very important.

According to the deputy governor, there are many factors that affect inflation, hence the importance of assessing the magnitude of shocks, their nature and, therefore, properly calibrating decisions to ensure that they provide an interest rate path for inflation. which allows you to get closer to the target price.

“My main concern is that inflation will return to the target level,” said Galia Borja.

This, he said, has kept the levels high, and without a doubt, the main challenge for Banco de México is to lock the downward and narrowing path of inflation towards the target in the forecast horizon, which is eight quarters ahead.

Gallus Borgia He noted that given the current scenario, which is so challenging in terms of inflation, international financial conditions and geopolitical tensions, it is important to highlight Mexico’s macroeconomic strength.

“This is reflected in a responsible fiscal balance, a stable debt-to-GDP ratio, a more balanced current account and a robust exchange rate in the face of the high volatility we face,” he stressed.