President Claudia Sheinbaum's first two weeks in office suggest that she will seek to maintain Mexico’s close geopolitical alignment with the US. But on the domestic front, there have been more worrying developments. The energy reform that's making its way through congress could have negative knock-on effects on Mexico's already fragile public finances while the enshrining of large minimum wage hikes into the constitution risks entrenching inflation at higher levels. Data out this week did at least show that inflation fell back. But it remains above target and the minutes to Banxico's September meeting suggest that an acceleration in the pace of easing in the coming months is unlikely.
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