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Mexico

Mexico's annual inflation rises to 3.75% in October, above forecasts

Faster price growth beyond market expectations may sharpen scrutiny of the central bank's recent interest rate cut.

Photo: The Rio Times

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 was above the 3.65% median forecast of economists surveyed by Bloomberg and Reuters. Yahoo Finance+2 Core inflation rose to 3.80% from 3.75% in September, slightly above the 3.78% expected. Yahoo Finance+3 Monthly consumer prices rose 0.65%, compared with a 0.42% increase in September. tradingeconomics.com+1 Both headline and core inflation remain within the central bank's target range of 3%, plus or minus one percentage point. Yahoo Finance

Around it

The release follows the central bank's decision last week to cut its benchmark rate by a quarter point to 6.25%, a four-year low. Bloomberg+1 Price increases were broad-based, with food and non-alcoholic beverages rising 3.55% and housing and utilities 3.60%. tradingeconomics.com The withdrawal of summer electricity subsidies raised electricity tariffs, with electricity climbing 18.51% on the month. tradingeconomics.com+2 Central Bank Governor Victoria Rodriguez said the rate cut was a one-time move rather than the start of an extended easing cycle. Bloomberg

Sources

  1. Yahoo FinanceMexico's headline inflation accelerates more than expected in October
  2. tradingeconomics.comMexico Inflation Rate Higher than Expected
  3. BloombergBanxico Chief Signals No Rush to Cut Again After Surprise Move
  4. bloomberglaw.comMexico Inflation Jumps to Put Focus on Banxico’s Rate Policy(2)
  5. el-fondo.comMexico's inflation accelerates to 3.75% in October
  6. The Rio TimesMexico October Inflation Rises to 3.75%

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