Lime growers in the Mexican state of Michoacan have banded together to both set prices of the fruit they sell to packing companies and control supply, spurring inflation that’s been above the central bank’s target range for the last two months.
Mexico’s benchmark bonds fell, pushing yields up for the first time in four days, after better- than-expected jobs data in the U.S. fueled speculation the Federal Reserve will keep reducing monetary stimulus.
Colombia’s peso fell the most in two weeks after the government and central bank announced measures to ease the local currency’s rally, including extending dollar purchases and reducing import tariffs.
Mexico’s Congress authorized the widest budget gap in four years as President Enrique Pena Nieto seeks to boost growth in Latin America’s second-biggest economy from the slowest pace since the 2009 recession.
Mexican policy makers said inflation will end the year below the upper limit of the central bank’s target range as the impact of tax increases that boosted consumer prices in January proves short-lived.