banxico decision, 2019-12-19
Regarding inflation risks, those to the upside are: i) core inflation’s persistence; ii) that the recent minimum wage increase leads to wage revisions that exceed productivity gains in different segments of the employed population and that this generates cost-related pressures, thus affecting formal employment and prices; iii) that the peso exchange rate comes under pressure from external or domestic factors, although the easing of certain external tensions and progress in ratifying the UMSCA have reduced such risk; iv) possible tariff and compensatory measures, although this risk has diminished; v) increases in agricultural, livestock or energy prices greater than expected; and, vi) that public finances deteriorate.
Sentiment: neutral
Topic: mp_inflation