Mexico’s annual inflation accelerated more than expected in the first half of October, with consumer prices rising 3.62 percent year on year, according to the National Institute of Statistics and Geography (INEGI). Analysts surveyed by Bloomberg had expected 3.59 percent. Headline inflation had stood at 3.49 percent in the prior period, in September.
Core inflation, which excludes food and fuel prices, reached 3.78 percent in the first two weeks of October. That was above the median estimate of 3.70 percent and up from 3.71 percent in September. Both measures are now running above Banco de México’s 3 percent target, which carries a tolerance band of one percentage point either side.
Food prices drive the fortnightly Rise
The data came out on Thursday.
Pressure on Banxico’s rate pause
The acceleration raises pressure on Banxico to reconsider its five-month pause in interest rate changes. Inflation has now moved further from the central bank’s target than it was in September, while the bank has held rates steady since the pause began.
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Source: National Institute of Statistics and Geography (INEGI) | Data: FRED — St. Louis Fed
