Hola everyone!
This is Augusto from TCF Mexico.
The wide gap between the inflation rate in Mexico and elsewhere in Latin America should narrow a bit in 2016, but not totally. A recent drop in the Mexican peso should probably start to have a more meaningful impact on consumer prices, pushing the inflation rate up to 3.3 percent at end-2016.
However, the worst recessions in the world this year will take place in Latin America, with little room for policymakers to try and avoid them as global commodity prices flounder, the Reuters poll showed last week.
The poll showing the brightest spots in Latin America to be Mexico and Argentina found Mexico’s growth has picked up to the fastest in two years in the third-quarter 2016 while inflation fell to a record low, helped by government efforts to spur competition. Mexico’s growth remained unchanged in the poll at 2.8 percent.
