· Inflation in Mexico sets slightly below estimates in November (3.33% annual).
· The White House resumes negotiations regarding the fiscal package with a counterproposal of $916 billion dollars.
· Boris Johnson travels to Brussels in his last attempt to reach a trade agreement with the EU.
· The United Kingdom warns about the risk of allergic reactions caused by Pfizer`s vaccine, which started being distributed yesterday.
The Consumer Price Index in Mexico recorded the lowest rate of inflation since June. During November, prices increased 0.08% and set at an annual rate of 3.33%, its lowest level since June. According to the INEGI, the fall in prices occurred because of the “Buen Fin” as the duration of the event went from lasting 4 days in 2019 to 14 days in 2020, which affected the price index in both fortnights in November and led to the lowest monthly rate of inflation since April. The effect is even more noticeable in the underlying component, which decreased (-) 0.08% monthly and set at 3.66% annual. Prices of goods decreased the most during the month (-0.31%), especially non-food goods (-0.78%) while services maintained moderate rates of inflation (0.16% monthly). Agriculture/livestock also recorded drops that reinforced the trend (-0.4%; -3.1% fruits and vegetables), while energy prices recorded their second monthly rise (1.92%). Even though the data opens up Mexico`s Central Bank`s room for cutting interest rates, markets don’t expect this to happen until 2021. Banxico`s next meeting will take place on December 17th and it`s estimated that it will keep interest rates unchanged under the argument that the recent decrease in inflation could be temporary.