Inflation shocks in Mexico temporary, Carstens says
Medium and long-term inflation expectations remain close to 3% target, governor says
The inflation rises Mexico has experienced in 2017 are short-term developments that are unlikely to persist, Bank of Mexico governor Agustin Carstens said in a speech on October 30.
Carstens noted the weakened relationship between employment and inflation in advanced economies. Despite stronger growth and lower unemployment, price rises across Europe, the US and Japan remain well below the 2% target. The governor then analysed how the Phillips curve is behaving in Mexico’s economy.
“The
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