Mexico’s headline inflation accelerated more than expected in December, but the core index continued to decline, raising expectations that the central bank will reduce inflation. key interest rate in the coming months.
He National Consumer Price Index (INPC) stood at 4.66%, marking two straight months of gains after hitting its lowest level since February 2021, according to data released Tuesday by the Statistical Institute. INEGI. Analysts had expected the figure to be 4.55%, according to a survey conducted by Reuters.
Instead of this Core inflationwhich is considered the best metric for measuring price path because it excludes high-volatility products, fell for the eleventh straight month to 5.09%, the lowest level since September 2021.
Last month, Bank of Mexico – which has an inflation target of 3% – kept its benchmark rate at 11.25%, the highest record it has reached since April, but in its message money-credit policy He left open the possibility of another cut, although he acknowledged that the inflation outlook continues to pose challenges.
A recent survey of economists by financial group Citibanamex found that a significant portion of the market foresees the first rate reduction in March.
In December alone, prices rose by 0.71% compared to the previous month, while the benchmark index showed a figure of 0.44%.
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.
