The Day at a Glance | April 22 2021

The Top

*Inflation in Mexico once again exceeded estimates for the first half of April.

*The ECB maintains interest rates and purchasing programs unchanged.

*The virus`s new upsurge could take away momentum from the recovery in developing and emerging economies: World Bank.

*Unemployment in Mexico drops more than expected in March; it fell to 3.9% (vs 4.2% e.).

*Jobless claims in the US continue to decrease (547 thousand).

*COVID-19 daily new cases at a global level reached a record high: 888,444 yesterday.

Economic environment

The Consumer Price Index in Mexico once again recorded growth figures that exceeded expectations for the first half of April. Prices in the economy increased 0.6% on a biweekly basis (vs -0.1% e.) and pushed inflation to an annual 6.05% rate, its highest level since 2017. The rise occurred despite a contraction in energy prices (-2.31% biweekly), which was compensated by an important increase among agricultural goods (1.6%), especially in fruits and vegetables (3.13%). Additionally, price increases were logged within the underlying component as persistent growth was recorded among goods (0.29%) and a moderate rise was seen in services (0.06%). This is the first time that prices have recorded growth during the first half of April since 2012. April is expected to be the last month in which a rise in the annual rate of inflation will be seen due to arithmetic effects in the base of comparison; however, the rebound is already greater than what was expected by the Central Bank of Mexico and could force it to keep a cautious stance for months to come.