Consumer Prices Climb; Investment Flows

The National Consumer Price Index (INPC) grew by 0.68% in January 2023, affecting numerous states and influencing annual headline inflation. At the same time, greater foreign investment in November 2022, allowed several industries to start the year off strong. Meanwhile, industry leaders consider reduced liquidity in the new year and its potential impact. 

In international news, experts at Moody’s CIO Summit suggest that Latin America is relatively well prepared for the impending recession. 

This is the Week in Finance!

Mexico

INPC Increased 0.68% in January: INEGI

The INPC grew by 0.68% in January 2023 against the previous month, reports INEGI. In the same month, annual headline inflation stood at 7.91%, which surpassed the 7.07% inflation observed in January 2022. 

Gross Fixed Investment Grew at 5.9%: INEGI

Gross fixed investment grew by 5.9% in real terms at an annual rate in November 2022, reports INEGI. Construction expenses increased 1.4%, while on machinery and total equipment, both national and imported, fell by 1%. Total equipment and construction grew by 12,2% and 1.6%, respectively.

Industry Trends 

Mexican Corporates Face Headwinds From Different Fronts

Mexican companies are well positioned to navigate current challenging business conditions. However, a prolonged inflationary environment, coupled with higher financing costs, may limit the companies’ ability to pass-through these effects to final customers, affecting profitability and cash flows, says Alberto Moreno, Senior Director, Flitch Ratings. 

What Does 2023 Hold for Venture Capital?

Despite an air of cautiousness before a volatile economic outlook, venture capitalists are still interested in supporting businesses concerned with inclusion and democratization, including edtech and insuretech, among other key industries, according to Denis Tris, Founder and CEO, Wortev Capital. 

International 

Latin America to Face Tighter Credit Conditions in 2023: Moody’s

Worldwide financial conditions are improving and although markets are starting to hum a more cheerful tune, the legacy of previous shocks continues to unfold. During Moody’s CIO Summit, the firm suggested that Latin America, among other emerging markets, is relatively well prepared for the impending recession.