Inflation in Mexico Continues to Ease: Slows to 4.66% in the First Half of September
According to a survey, Banxico is expected to cut the rate by 25 basis points at its meeting on Thursday.
Inflation in Mexico reported its fourth consecutive month of slowdowns, although it remains above the Bank of Mexico’s (Banxico) target range of 3% +/- 1 percentage point.
The data released this morning came in lower than market expectations. According to a Reuters survey, analysts had forecasted an annual inflation rate of 4.73%.
This latest figure increases the likelihood that Banxico, led by Victoria Rodríguez Ceja, will further reduce its interest rate during this week’s monetary policy meeting.
Currently, the central bank’s interest rate stands at 10.75%, after a series of cuts as part of a normalization cycle. Previously, the rate had reached a historic high of 11.25%.
According to a survey, Banxico is expected to cut the rate by 25 basis points at its meeting on Thursday.
The report from Inegi revealed reduced pressures in both of its main components, although some categories continue to see significant price increases.
Core inflation, which excludes goods and services with highly volatile prices, came in at an annual rate of 3.95%.
Within core inflation, the price of goods rose by 2.94%, while services saw a 5.15% increase.
In the case of non-core inflation, prices rose by 6.73% in the first half of September. Agricultural products became 6.50% more expensive year-over-year, while energy prices and government-regulated tariffs increased by 6.67%.
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