Photo: The Rio TimesPhoto: The Rio TimesMexico
Mexico's annual inflation rises to 3.75% in October
Faster price growth above forecasts tests the central bank's easing path and its 3% target range, affecting rate expectations for businesses and investors.
What happened
Mexico's annual inflation rate accelerated to 3.75% in October from 3.45% in September, the third consecutive monthly increase. Yahoo Finance+3 The reading came in above the 3.65% forecast in a Reuters poll and the 3.65% median of economists surveyed by Bloomberg. Yahoo Finance+2 Core inflation, which strips out some volatile food and energy prices, rose to 3.80% annually from 3.75% in September, slightly above the 3.78% forecast. Yahoo Finance+3 Monthly consumer prices rose 0.65% in October, according to the national statistics agency. tradingeconomics.com+1 Airfares rose 26.36%, electricity rates 18.51% and tomato prices 9.68% in the month, the main contributors to the increase. el-fondo.com+1
Around it
Both headline and core annual inflation remained within the central bank's target range of 3%, plus or minus one percentage point. Yahoo Finance+1 Price increases were broad-based, with food and non-alcoholic beverages up 3.55% from 2.55% in September and housing and utilities up 3.60%. tradingeconomics.com A market economist said it seems highly unlikely the central bank will alter its forward guidance to opt for further interest rate cuts. Yahoo Finance The release follows a split decision by the central bank to cut its benchmark interest rate by a quarter point. el-fondo.com
Sources
- Yahoo FinanceMexico's headline inflation accelerates more than expected in October (opens in a new tab)
- tradingeconomics.comMexico Inflation Rate Higher than Expected (opens in a new tab)
- el-fondo.comMexico's inflation accelerates to 3.75% in October (opens in a new tab)
- news.cnMexico's annual inflation rises to 3.75 pct in October (opens in a new tab)
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