Economy June 22, 2026 02:22 PM

Citi Economists Trim Mexico Inflation and Growth Forecasts for 2026

Survey shows modest downward revisions to headline inflation and GDP projection; policy rate and 2027 forecasts largely unchanged

By Hana Yamamoto
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Economists polled by Citi have lowered their expectations for Mexico's headline inflation in 2026 and for 2027, while leaving core inflation forecasts and the projected policy rate intact. The survey also recorded a small downward revision to 2026 GDP growth and a slight improvement in the projected peso exchange rate for 2026.

Citi Economists Trim Mexico Inflation and Growth Forecasts for 2026
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Key Points

  • Economists in Citi's survey lowered Mexico's headline inflation forecasts to 4.23% for 2026 (from 4.35%) and to 3.80% for 2027 (from 3.90%).
  • Core inflation projections remained unchanged at 4.20% for 2026 and 3.85% for 2027; the overnight policy rate outlook was held at 6.50% for both years.
  • The panel trimmed its 2026 GDP growth forecast to 1.10% from 1.20%, while the 2027 growth estimate stayed at 1.80%; the 2026 peso forecast improved slightly to 17.92 per dollar.

Economists participating in Citi's latest survey have marginally reduced their forecasts for Mexico's headline inflation in 2026 and 2027, according to the results released today. The updated point estimates show a small move lower for both years while key policy and core inflation projections remained stable.

The survey reported a revised consumer price inflation forecast of 4.23% year-over-year for 2026, down from the 4.35% projection recorded in the prior survey conducted on June 5. For 2027, the headline inflation estimate was lowered to 3.80% from 3.90% in the earlier poll.

Core inflation estimates were unchanged in the new results. Economists left the core inflation projection for 2026 at 4.20%. The core figure for 2027 was reported at 3.85%, also unchanged from the previous survey.

On growth, the panel trimmed its outlook for Mexico's economy in 2026 to 1.10%, a modest reduction from the 1.20% forecast included in the June 5 survey. The GDP projection for 2027 held steady at 1.80%.

The survey respondents maintained an unchanged outlook for Mexico's overnight policy rate, continuing to project a rate of 6.50% for both 2026 and 2027. Citi noted that this projection has been stable in surveys dating back to April 7.

Forecasts for the peso also shifted slightly. For 2026, economists now expect an exchange rate of 17.92 pesos per U.S. dollar, an improvement versus the 18.00 projection from the June 5 survey. The 2027 peso forecast remained unchanged at 18.50 pesos per dollar.


Context and interpretation

The survey captures incremental revisions across headline inflation, growth, and the currency outlook, while leaving core inflation and the policy rate path unaltered. The adjustments reported are modest in magnitude but reflect the current consensus among the surveyed economists at Citi.

What the survey shows at a glance

  • Headline inflation - 2026: 4.23% (previously 4.35%); 2027: 3.80% (previously 3.90%).
  • Core inflation - 2026: 4.20% (unchanged); 2027: 3.85% (unchanged).
  • GDP growth - 2026: 1.10% (previously 1.20%); 2027: 1.80% (unchanged).
  • Overnight policy rate - 2026 & 2027: 6.50% (unchanged since April 7 surveys).
  • Exchange rate - 2026: 17.92 pesos per dollar (previously 18.00); 2027: 18.50 (unchanged).

These figures represent the current consensus from the Citi survey respondents and should be interpreted as the surveyed expectations rather than realized outcomes.

Risks

  • Forecast revisions are modest and subject to change - the survey reflects current expectations which may shift with new data, affecting consumer price and growth outlooks (impacts sectors such as consumer goods and financial markets).
  • Policy path left unchanged in the survey - an unexpected change in monetary policy or macroeconomic conditions could alter the rate outlook and market reactions (impacts banking, fixed income, and currency markets).

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