In Mexico, Inflation Triggers Interest Rate Hike


The bank said underlying inflation showed a “surprising” increase to 8.45%. Food products experienced an annualized inflation of 14%, threatening to erase much of the annual 20% increase in minimum wages announced for 2023.

The central bank’s interest rate is at its highest level since 2007. The Mexican peso rose 0.9% against the U.S. dollar Thursday to close at 18.77 to $1.

The bank said in a statement that “among the global risks are a pandemic, the persistence of inflationary pressures, the worsening of geopolitical tensions and tighter monetary and financial conditions.”

Source: FOX News