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Price Hike in Oil Market leads to Inflation in Mexico

December, 29 2016
watermark Economic news

The Mexican government will implement a price hike in gasoline prices as much as one-fifth in the first month of 2017. This is the fifth price hike of the country to assure that it is on a direction more than the 3% target. This signals economist to change its inflation forecast higher for 2017 while forming uncertainty to Central bank’s target rate.

The Banorte Mexican bank raised its inflation outlook to 4.7% from 4.3% after making adjustments to the former ceiling price of 14.2% to 20.1%. The Brokerage FInamex will follow in raising its 4.5% inflation forecast. However, it is anticipated by banks that inflation rates would further go up in 2017 but still not exceeding the 4 percent ceiling price.

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Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.