Mexico's Central Banker Heath Sees Inflation Dipping Below 4% In January

• Mexico's headline and core inflation rates will likely land below 4% in January, deputy central bank governor Jonathan Heath told newspaper Excelsior in a story published on Monday, adding that the bank does not need to exaggerate a restrictive posture.
• The central banker's forecast comes as some brace for upward pressure on prices, as the incoming U.S. president, Donald Trump, has threatened blanket tariffs on its southern neighbour's exports to the United States in addition to mass deportations. Both have the potential to drive inflation.
• Heath, one of four members of the central bank's policy-setting board, also told the newspaper that he aims to lower the Latin American economy's inflation rate to the bank's 3% target. In December, Mexico's headline inflation rate eased to 4.21%, according to official data, which also saw the core rate tick up to 3.65%.
• At the time, Heath hailed the evolution of prices as "good news," as inflation slowed to its lowest rate since October 2023.

(Source: Reuters)