IMEF says attack on Trump creates uncertainty

MEXICO CITY (El Universal).— While inflation could have peaked in June of this year at around 5%, July could be a surprise with a more agitated geopolitical environment, the Mexican Institute of Financial Executives (IMEF) warned yesterday.

The head of the organization, José Domingo Figueroa, said in a press conference that the attack against former President Donald Trump adds an additional element of complexity and uncertainty to a global environment that was already highly complex and uncertain.

In this regard, the vice president of the National Committee for Economic Studies, Mario Correa, said that with this, inflation should now have reached its maximum point, “if we look at the perspectives of Baco de México (Banxico) in its recent survey, the peak of inflation should be in the sixth month, but July can easily be a surprise.”

Greater uncertainty

Mario Correa stated that if this level exceeds 5%, it would be very difficult for the Bank of Mexico to cut its rate in August.

“We see that inflation is coming down, but we have to be careful; if you want to risk lowering it before you have it under control, the repercussions are worse,” he said.

The vice president of the National Economic Research Committee said there is a lot of turmoil in the world, and now uncertainty is added to the panorama following the attack on Donald Trump.

This, he said, could lead to potential disruptions in different markets, with higher prices and restrictions on foreign trade.

“Once again, this creates yet another uncertainty in an uncertain environment,” he said.

“When one of the potential presidents of one of the most powerful countries in the world is the victim of an attack, the natural reaction is for security circles to tighten and for more precautions to be taken,” he said.

He said that when there is too much agitation in such events, things get complicated.

He also noted that the risks to inflation remain on the upside, and one of them is already on our radar and is already a problem: climate change. This, added to the very agitated geopolitical environment: With an active war in Europe for the first time since World War II, a clear challenge of some potential to the established order in the West.

He said that different actions are taking place on various fronts, such as what happened in Canada, where it was discovered that the Chinese government has secret police bases to intimidate those who emigrated to that country.

While Canada’s Trade Secretary spoke out against China’s unfair trade, Europe is calling for China to stop supporting Russia