Inflation continues its downward trend, and the construction sector is clearly recovering

Last week, it was reported that inflation in September 2023 reached 4.45% annually, maintaining a favorable deceleration trend. Core inflation (excluding volatile items such as energy products and food) similarly shows a deceleration (5.76% in September 2023). Therefore, we continue to expect general inflation to return to Banxico's target range by the end of the year or early next year, and core inflation by 2024 (see graph 1).

Despite this, risks remain that these expectations will be met. Specifically, historical remittances and the minimum wage increase have strengthened domestic consumption, which could generate inflationary pressures by the year's end. Additionally, the construction sector has not only recovered from its pre-pandemic level but has reached levels not seen since early 2018. In 2023 alone, the value of construction production has grown by 32% due to favorable trends in the country (specifically nearshoring).

At Soda Capital, we support you in taking advantage of the favorable moment for residential, industrial, or commercial real estate project development by granting structured bridge loans according to your needs, aiming to maximize your project's profitability.