Mexico says 2005 inflation at historic low
Mexico this week produced yet another sign of consolidating macroeconomic stability after it announced 2005 inflation was the lowest on record.
Prices increased a slightly higher-than-expected 0.61 per cent in December but ended the year at only 3.3 per cent; lower than at any time since the government began keeping records 36 years ago.
The figure, which analysts say is largely the result of a highly restrictive monetary policy exercised during most of last year by Mexico’s central bank, places inflation squarely within the bank’s 3 per cent annual target with a one-point margin either side.
The result will doubtless help to dispel any lingering fears of economic turbulence as Latin America‘s second biggest economy nears presidential elections in July.
With the exception of 2000, when President Vicente Fox of the National Action party (PAN) assumed power, presidential election years in Mexico’s recent past have typically brought with them severe economic crises. Mr Fox has vowed to hand over a solid economy when he relinquishes power at the end of this year.
More: news.ft.com
UPDATE 4-Mexico pushes rates lower in historic move
Mexico's central bank pushed interest rates lower on Friday for the first time in over three years to give the soft economy a boost, now that inflation is under control.
It was the first time the bank has explicitly told markets where it wants interest rates to go, and analysts said it was a major step toward a U.S.-style reference rate system.
"Considering the balance of risks versus inflation, the central bank has decided to allow a relaxation of domestic monetary conditions of no more than 25 basis points," the central bank said in
Mexico says 2005 inflation was at record low
Mexico produced yet another sign of consolidating macroeconomic stability this week after it announced 2005 inflation was the lowest on record.
Prices increased a slightly higher-than-expected 0.61 per cent in December but ended the year up at only 3.3 per cent - lower than at any time since the government began keeping records 36 years ago.
The figure, which analysts say is largely the result of a highly restrictive monetary policy exercised during most of last year by Mexico's central bank, places inflation squarely within the bank's 3 per cent annual target with a one-point
UPDATE 2-Mexico central bank pushes interest rates lower
Mexico's central bank on Friday pushed interest rates 25 basis points lower for the second straight month to revive a tepid economy.
The bank said it would allow the overnight lending rate, which has held at around 9.50 percent for the last month, to fall a quarter of a percentage point. The move was widely expected as inflation has come under control in recent months.
After a long period of tightening monetary policy to bring inflation down, the central bank changed tack last month and began pushing rates lower to help the struggling economy.
"The
Mexico inflation at 0.67 pct in first half November
Mexican consumer prices rose 0.67 percent in the first half of November, the central bank said on Thursday, slightly above expectations but not high enough to stop it from loosening monetary policy on Friday.
A Reuters poll of analysts had a median forecast of 0.65 percent.
Closely watched core inflation, which strips out volatile food and energy prices, was 0.12 percent for the first half of the month, compared with expectations of 0.15 percent.
The central bank began easing rates on Aug. 26 to boost a sluggish economy weighed down by a limp manufacturing
Mexico's Inflation Rate Fell to Record Low of 3.05% in October
Mexico's annual inflation rate fell to a record low in October, adding to speculation that the central bank will keep cutting the benchmark lending rate to bolster economic growth.
Inflation was 3.05 percent in the 12 months through October, down from 3.51 percent in September, the central bank said. That's the lowest annual inflation rate since the central bank began keeping records in 1969. Mexico's monthly inflation rate fell to 0.25 percent in October from 0.4 percent the previous month.
The central bank, taking advantage of the slowdown in inflation,
Mexico's Inflation Rate Drops to Record Low in August (Update1)
Mexico's annual inflation rate fell to the lowest on record in August, adding to expectations that the central bank will cut the benchmark lending rate for a second straight month.
Inflation in the 12 months through August slowed to 3.95 percent, the lowest rate since the central bank began keeping records in 1969, from 4.47 percent in July. The monthly inflation rate dropped to 0.12 percent from 0.39 percent in July as the cost of cars and vegetables such as tomatoes and avocados fell.
``Inflation has been declining consistently and
Mexico Fixed-Rate Bond Yields to Rise on Inflation, Moreno Says
Mexico's fixed-rate peso bond yields may rise in 2006 as the inflation rate climbs from a record low, said Salvador Moreno, chief economist at ING Groep NV's Mexican unit.
The yield on fixed-rate bonds may rise as much as 30 basis points, or 0.3 percentage point, as higher-than-expected consumer price increases drive down already ``tight'' valuations, Moreno said. The annual inflation rate may climb as high as 3.9 percent in January, more than the 3.5 percent expected by many fund managers, he said.
``There's a risk that inflation expectations rise
Mexicos Peso Falls to Eight-Week Low Amid Inflation Concerns
Mexicos peso dropped to an eight- week low against the dollar and local-currency bonds fell on expectations inflation quickened last month.
The peso fell as much as 0.6 percent today before a report that is expected to show consumer prices rose 0.44 percent last month, the biggest increase in seven months, according to the median forecast of 16 economists in a Bloomberg survey. Accelerating inflation decreases the value of peso-denominated assets.
The inflation number today is going to look pretty bad, said Raul Rodriguez, head of economic analysis at Mexico City- based
NFL - 49ers, Cardinals set for historic Mexico trip
Sunday 2nd October 2005 will be a momentous date in the 86-year history of the NFL, as it will be the date of the first ever regular season game to be played outside the United States.
The San Francisco 49ers will take on the Arizona Cardinals at the Azteca Stadium in Mexico City, with a crowd of 85,000 expected.
The event is part of Hispanic Heritage Month, and could pave the way for further games to be held outside the USA, including a proposed game in London.
The game will be broadcast by 18 broadcasters
UPDATE 4-Mexico holds rates steady, sees inflation easing
Mexico's central bank on Friday said it expects inflation to drop inside its target range this year, but refused to ease monetary policy for now and insisted that interest rates should remain high.
The central bank board said after its twice-monthly policy meeting it was keeping its money market "short" steady at 79 million pesos a day. An increase in the short reduces overnight lending to banks and tends to push interest rates higher.
Although the bank said it sees inflation falling inside the target range of 2 percent to 4 percent this year, it
