The further rise in Mexico’s headline inflation, to 3.8% YoY in February, was largely driven by higher fuel prices. This trend has further to run in the coming months which, alongside the recent downward pressure on the peso, suggests that Banxico will refrain from further monetary easing from here, in the view of Nikhil Sanghani, Latin America Economist at Capital Economics. Key quotes “The breakdown of the data showed further rises in fuel inflation offsetting weaker food inflation. Transport and housing inflation, which includes petrol and gas respectively, rose particularly sharply last month. This outweighed the continued slide in food inflation in February. Meanwhile, price pressures were fairly strong in most other categories, causing core inflation to tick up from 3.8% to 3.9%.” “We think that headline inflation will rise well above Banxico’s 2-4% target range in the coming months. Unfavourable base effects combined with rising oil prices in recent weeks will cause a surge in energy inflation in late Q1 and much of Q2. The recent sell-off in the peso will also put upward pressure on prices. Accordingly, headline inflation will probably rise close to 5% in the next few months, while it’s likely that core inflation will remain stubbornly close to 4% too.” “Rising inflation will probably cause jitters at the central bank and put an end to Banxico’s easing cycle.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Ethereum takes off toward $2,000 FX Street 1 year The further rise in Mexico's headline inflation, to 3.8% YoY in February, was largely driven by higher fuel prices. This trend has further to run in the coming months which, alongside the recent downward pressure on the peso, suggests that Banxico will refrain from further monetary easing from here, in the view of Nikhil Sanghani, Latin America Economist at Capital Economics. Key quotes "The breakdown of the data showed further rises in fuel inflation offsetting weaker food inflation. Transport and housing inflation, which includes petrol and gas respectively, rose particularly sharply last month. This outweighed the continued slide in food… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.