Mexico’s inflation seen slowing further in October – Reuters poll
2023.11.07 11:16
© Reuters. A man sells corn grains at a public market in Ozumba de Alzate, State of Mexico, Mexico, May 24, 2022. REUTERS/Edgard Garrido/File photo
MEXICO CITY (Reuters) – Mexico’s inflation likely continued to ease in October for the ninth consecutive month, a Reuters poll showed on Tuesday, though still above the central bank’s target and fueling bets that it will hold the benchmark interest rate later this week.
A median forecast of 16 analysts projected annual headline inflation for October at 4.28%, slowing from 4.45% in September and the lowest since February 2021 after having climbed to a two-decade high of 8.7% last year.
Core inflation, which strips out some volatile food and energy prices, was seen at 5.50% year-on-year in October, down from 5.76% in September.
Banxico, as the central bank is known, last month held its key interest rate at an all-time high of 11.25% for the fourth straight meeting, citing a complicated and uncertain inflationary outlook.
The central bank’s board also pushed back its forecast to reach the bank’s inflationary target of 3%, plus or minus one percentage point, to the second quarter of 2025.
Analysts also saw consumer prices speeding up slightly to rise 0.38% in October, while core inflation slowed to 0.40%.
National statistics institute INEGI will release October inflation data on Thursday, just hours ahead of Banxico’s monetary policy decision. The central bank is widely expected to continue to hold rates.
