· Inflation in Mexico sets at 3.15% annual in 2020.
· Congress confirms Joe Biden as new President of the United States.
· Democrats reach victory in Georgia and gain control of the Senate.
· Economic indicators: Initial jobless claims in the US confirm a slowdown (787 thousand up to January 2nd).
Figures published by the INEGI this morning showed a slower than expected acceleration in the economy`s prices during December. General inflation increased 0.38% in December compared to the previous month; figure slightly below the estimated 0.39%. With this, the annual rate of inflation in 2020 set at 3.15%. Prices of fruits and vegetables once again recorded a month over month contraction (-5.51%) and were the main component that caused a contraction in the non-underlying inflation (-0.13% monthly) despite the rise in energy prices (1.13%). Regarding underlying inflation, this one exceeded estimates (0.55% monthly vs -0.05% e.) after a persistent acceleration in prices of non-food commodities (1.22%). At an annual rate, underlying inflation closed 2020 at 3.8% and confirmed a rebound with respect to previous months. The level of general inflation recorded in December is the lowest since May and maintains expectations of seeing greater cuts in interest rates on behalf of the Central Bank of Mexico, even though the rise in underlying inflation could be used as a cautionary argument by the central bank.
After delays caused by civil disorder, US Congress confirmed Joe Biden as the new President of the United States. Joe Biden`s presidential election victory was confirmed after the Electoral College`s official vote count in US Congress yesterday. The process was interrupted by a group of President Trump`s followers, who barged into the Capitol and forced the session to be suspended for several hours. Civil disorder was kept under control, although some Senators have requested the President`s resignation for motivating these actions. There are even reports of the possibility of some of the cabinet`s members who may formally present a petition to remove Trump from office due to mental disability, based on the 25th Amendment of the Constitution. Other legislators have talked about the possibility of Trump himself resigning. Either way, the Trump Administration will come to an end on January 20th, when Joe Biden takes office. The new administration will be backed by a Congress with Democratic majority after Georgia`s elections came to an end. The result suggests that Biden will have greater political strength to push for new fiscal stimuli, increase taxes and regulatory policies in some industries; even though the Senate remains split 50-50 and there could be barriers.