Mexico’s central bank on Wednesday raised its 2026 economic growth projection while extending the timeline for returning headline inflation to its target.
The Bank of Mexico, known as Banxico, lifted its 2026 GDP growth forecast to 1.5% from a prior estimate of 1.1%. The inflation target for headline consumer prices, set at 3%, was pushed back to the fourth quarter of 2027, delayed from the previous projection of the second quarter of 2027.
Core inflation, which excludes volatile items, is now forecast to reach 3.5% by the fourth quarter of 2026, up slightly from a prior estimate of 3.4%. Recent data showed headline inflation at 3.26% and core inflation at 3.93% in the first half of August.
The central bank also trimmed its 2027 growth outlook to 2.0% from 2.1%, reflecting a cautious stance amid persistent price pressures.
