A one-time government increase in Mexican gasoline prices in January of next year could delay the expected slowdown in inflation, but the central bank says a new government policy on energy prices will help in the long run to meet its 3% inflation target.
The Mexican government sets gasoline prices, and in recent years has been raising them by a small amount each month to reduce the level of government subsidy. Starting next year, the price will be raised in line with expected inflation. And in coming years Mexico will move toward allowing markets to set the prices under . . .