Mexico's Annual Inflation Is Getting Worse! New Data Shows Banxico Might Raise Benchmarks Interest Before December Ends
Mexico is currently having some issues since its inflation rate is now getting higher. New data revealed that the North American country's rising prices are accelerating quicker than experts expected.
According to Reuters' latest report, this was already seen back in November. The inflation rate during this period is now considered the highest in the last two decades.
Because of this, experts are now expecting that Banxico, the country's central bank, would raise its benchmark interest rate further, especially these coming weekends.
Mexico's Inflation Rate to Increase?
The US News reported that The National Institute of Statistics and Geography (INEGI) confirmed that the inflation rate of the number two economy in Latin America increased to around 7.37% in November.
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On the other hand, the country also experienced a jump of 6.24% back in October. Based on these numbers, the inflation rate in the month of November is quite higher compared to the one seen in the first quarter of 2021.
Meanwhile, the Bank of Mexico announced that it has raised its benchmark interest rate by 25 basis points. This is the fourth price hike experienced by the Latin country.
The Mexican central bank is expected to conduct its final monetary policy meeting, which would happen this coming December 16.
Irene Espinosa, one of the board members of Banxico, explained that the financial agency is trying to make its monetary policy stance as accommodative as possible.The official added that the bank would respond further to lessen the price hike happening in the country.
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Inflation Rate's Impact on People's Finances?
AFH explained that the inflation rate is the price increase in a country. This means that the sold goods would be much expensive.
Even if your salary has increased, most of your finances would be consumed by your daily needs. These include food, electricity, water, transportation, and other essential things.
The inflation rate could also affect your savings accounts, as well as the performance of your company.
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