RPT--🇲🇽❗️Cable FX Macro Weekly Note: Mexico Bi-Weekly Consumer Prices

**As seen in Risk In The Week report 01/19/24, subscribe at cablefxm.co.uk/reports

The most recent inflation data showed Mexico consumer prices accelerating in the second half of December, headline Bi-weekly CPI rose to 4.86% Y/y from the prior 4.46%, the sharp rise left the metric at the highest level since July. The core figure extended lower to 4.98% Y/y from the prior 5.19%. We continue to see the persistence of last year's trend as goods prices slow while services inflation remains sticky, the latter is now ticking at 5.26% Y/y.

Looking ahead, J.P. Morgan economists expect a 65% chance of Banxico's start of its easing cycle by March, and a 30% probability by May. J.P. Morgan's focus now lies on whether the central bank's start of rate cuts will be followed by intermediate pauses or if these will be continuous.