Bank of Mexico governor, Agustín Carstens, said that despite the historic levels reached by the price index in recent weeks, the central bank expectations remain intact and inflation is not out of control.
“We have had 10 months of rising inflation, reaching 6.17% in the first half of May. But I am still convinced that inflation is not unanchored and is not out of control, and that’s the most important point”, Carstens said.
During the national meeting of directors of BBVA Bancomer, Carstens stressed that if the Bank of Mexico had not acted and adjusted its reference rate, inflation would have reached 8%.
The official admitted that inflation is now at the highest rates of recent years. In that sense, Carstens explained that, since the elections in the United States in November 2016, external factors have influenced the Mexican economy, due to the uncertainty of economic policies and the bilateral relationship between Mexico and the United States.
Carstens also emphasized that inflation is expected to return to rates of 3 and 4% by 2018, once the short-term effects on prices have dissipated, and stated that the Bank of Mexico “has done its job” although it is a complicated labor due to the lag of the effect of monetary policy on the national economy.
Finally, the official claimed that the person who will be occupying his position next year, will face the challenge of confirming the downward trajectory of inflation in Mexico.