Mexico Inflation Hits 4.59 Percent as Central Bank Splits
Mexico's inflation rose to 4.59% in March as the central bank board remains split on rate cuts. Policymakers cite geopolitical risks and volatile food prices.
A significant rift within the central bank of Mexico has intensified following new data showing that inflation reached a year-and-a-half high in March. Minutes from the bank's March 26 meeting, released on Thursday, reveal a board deeply divided over the recent decision to lower interest rates, as members weigh concerns over resurgent price pressures and geopolitical instability against a sluggish domestic economy.
Figures from the national statistics agency INEGI indicate that consumer prices climbed 4.59% in the year through March, up from 4.02% in February. This represents the highest level of inflation since October 2024. The data follows a contentious 3-2 vote by the central bank, known as Banxico, to reduce its benchmark interest rate by 25 basis points to 6.75% last month.
