Inflation & Prices
Mexico Inflation Accelerates as Banxico Starts to Weigh Interest Rate Cuts
- Annual inflation accelerated to 4.66% versus est. 4.57%
- Central bank has held rate at record 11.25% for six decisions
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Mexico’s consumer prices rose more than expected in December with increased spending during the holiday season keeping pressure on the central bank as it starts considering an interest rate cut in coming months.
Consumer prices rose 4.66% compared to the same period a year earlier, up from 4.32% in November, the national statistics institute reported Tuesday. The print was also above the 4.57% median estimate of analysts in a Bloomberg survey. Core inflation, which strips out volatile items such as fuel and is closely watched in Mexico, slowed to 5.09% from 5.3% in November — below economists’ 5.15% projection.