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Mexico & Nafta - June 2017 (ISSN 1741-444X)

Inflation remains a concern as growth exceeds expectations

By all measures, Mexico’s domestic economy has been overperforming this year. As positive as this is, there still is one factor that is fuelling concerns among economists about the general health of the Mexican economy: rising inflation. While the economic authorities have acknowledged that there are number of factors that have been producing significant inflationary pressures, which have pushed prices above desired levels, they insist that inflation is not running out of control. Yet the worry is that the persistently rising prices could dampen domestic consumption, undermining the economy’s positive performance.

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