inflation Mexico’s headline rate accelerated in November, albeit less than expected, while the benchmark index continued to decline, raising expectations that the central bank will cut its key interest rate next year.
The National Consumer Price Index (INPC) stood at 4.32%, up from 4.26% in the previous month when it reached its lowest level since February 2021, according to data released this Thursday National Institute of Statistics and Geography (Inegi).
However, analysts expected the rate to be 4.40% in November, according to a survey conducted by Reuters.
On the other hand, inflation underlying, Considered the best metric for measuring price path because it excludes high-volatility products, it fell for the tenth month in a row to 5.30%, its lowest level since October 2021.
Inside, on a monthly basis, prices for goods grew by 0.14%, and services, 0.42%.
The products that showed the most growth were green tomato, with a deviation of 24.91% and electricity, from 22.26%. On the contrary, the greatest decrease was noted lemon, whose monthly variation decreased by 26.95%, followed by avocado, from -6.36%.
In turn, the price index not underlying Its fluctuations were 1.81% per month and 1.43% per year. At the same time, product prices agricultural increased by 0.79%, and vigorous and government approved rates – 2.70%.
This increase was a consequence, to a large extent, of the conclusion of a program to subsidize the summer electricity tariff in 11 cities of the country.
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Finally, in the first half of October 2023, the minimum consumer basket price index increased monthly by 0.76 and 3.92% year on year. For the same period in 2022, the corresponding figures were 0.67 and 8.45%, in that order.
Last month Bank of Mexico (Banxico) saved interest rate benchmark at an all-time record of 11.25%, where it had been since March, but changed the tone of its monetary policy message, opening the door to a coming cut.
Since then, several members of the bank’s Board of Governors have supported the new language. Last week, Deputy Governor Jonathan Heath mentioned in an interview that the rate could be cut “once or twice” in 2024.
(according to Reuters)
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
