Mexico's central bank, Banco de México (Banxico), raised its economic growth forecast for 2026 to 1.5% from a prior estimate of 1.1%, while delaying the projected timeline for achieving its 3% inflation target to the fourth quarter of 2027.
The central bank also revised its core inflation outlook for the fourth quarter of 2026 upward to 3.5%, compared with the previous forecast of 3.4%. Inflation data from the first fortnight of August showed headline inflation at 3.26% and core inflation at 3.93%, remaining above the bank's target range.
In contrast, Banxico lowered its 2027 economic growth projection to 2.0% from 2.1% in its previous assessment. The decision to push back the inflation target reflects persistent price pressures, with the bank now expecting general inflation to stabilize at 3% only by the end of 2027, a delay from the previously projected second quarter of 2027.
The adjustments come as Banxico maintains a cautious monetary policy stance amid ongoing inflationary pressures in the Mexican economy.
