MarketWatch is reporting Mexico inflation at a 21 year high. Mexico’s central bank is expected to raise interest rates by 75 basis points to 7.75 percent. Why does this matter? Mexico is one of the top trading partners for the United States and whatever inflation happens in Mexico is bound to cross the border over to the United States.
The consumer price index rose 0.49% in the first two weeks of the month, moving the annual rate up to 7.88% from 7.65% in May, the National Statistics Institute said Thursday. Core CPI, which excludes energy and agricultural products but includes processed food, rose 0.5% in the first two weeks of June and was up 7.47% from a year earlier, its highest level since December 2000.
Marketwatch.com
If the US Federal Reserve it will fix inflation by raising US central bank rates, it may have a long way to go and many hikes ahead. The best thing to do is to buy defensive value dividend stocks and invest in reasonable real estate when the housing market corrects as mortgage rates go higher and higher.
In the meantime, stay tuned and stay solvent…