Inflation Shrinks in March; Banks to Finance Iberdrola's Purchase
Home > Finance & Fintech > Weekly Roundups

Inflation Shrinks in March; Banks to Finance Iberdrola's Purchase

Photo by:   Image by kschneider from Pixabay
Share it!
Emilio Aristegui By Emilio Aristegui | Junior Journalist and Industry Analyst - Thu, 04/20/2023 - 10:00

Mexico and other countries continue to fight the rising inflation, with central banks imposing strict policies to reduce economic pressures. During March 2023, inflation slowed down in Mexico, reports INEGI. 

Ready? This is the week in Finance!

Banks Actively Involved in State’s Purchase of Power Plants

BBVA, Santander and Bank of America could collaborate to finance the government's purchase of Iberdrola's power plants, report the three banking institutions. Mexican President Andrés Manuel López Obrador insists that the cost of Iberdrola’s acquisition will be recovered in the next decade. The operation would be worth US$6 billion and could also involve Banorte and Inbursa. 

Inflation Decreased in March, Fails to Remain Above Overall Index: INEGI

INEGI explained that inflation fell in March 2023, but that it remains above the overall index, at 8.09% year-on-year. In comparison to February 2023, inflation dropped less than one-tenth of a percentage point. INEGI estimates that the cost of food and non-alcoholic drinks increased 12.9%, goods 10.12% and other services 7.72%. The institute explained that Mexico started 2023 with a year-on-year inflation rate of 7.91%, the highest recorded since January 2001.

The Adoption of AI for Startups

Venture capital firm 500 Global has now invested in more than 2,700 startups globally, and found key trends to look out for. “The mainstream consumption of technology is leading all industries to study the adoption of AI, which has created many opportunities for various industries, including fintech, education and healthcare. All companies in our portfolio have been finding ways to implement advanced technology into their solutions. This market will become highly competitive quickly. Everyone must adopt AI somehow,” explains Santiago Zavala, Global Managing Partner, 500 Global. 

IMF Stresses Importance of Inflation Contention

The International Monetary Fund (IMF) explained that central banks must take strict actions to contain inflation through monetary policies, as financial conditions unsettled market stability during 1Q23. However, the IMF explained that risks have been controlled so far. “What we have seen is that these policy tools have been deployed in a very effective manner so that any threat to financial stability was contained and abated very quickly. So, vulnerabilities are there, but there are also many tools to contain risks to financial stability,” says Tobias Adrian, Financial Counselor, IMF, via a press release.

Photo by:   Image by kschneider from Pixabay

You May Like

Most popular

Newsletter