Consumer inflation in Mexico changed course and accelerated again during the month of October, according to information released Thursday by the National Institute of Statistics and Geography (INEGI).
In October, the National Consumer Price Index (INPC) showed a variation of 0.55% compared to the month of September, while at an annual rate consumer inflation was 4.76 percent.
With this data, inflation interrupted the three consecutive months of decelerations that it had previously reported, and continued above the Bank of Mexico’s (Banxico) target range of 3% +/- 1 percentage point.
Although it continues above the central bank’s target, consumer inflation this year has begun to slow down to return to Banxico’s target, which has led the latter to cut its interest rate in its last monetary policy meetings.
At its last meeting in September, Banxico’s Governing Board cut its rate by 25 points, leaving it at 10.50%, in a four-to-one decision, where Deputy Governor Jonathan Heath voted to leave it unchanged.
With this, the rate was cut for the second consecutive time and, so far this year, it has accumulated a downward adjustment of 75 basis points.
The next monetary policy decision will take place on November 14.
Non-core accelerates
In the Inegi report, it was observed that the Non-core Index was the one that accelerated during the month of October, going from a rate of 6.50 to 7.68% compared to the previous year.
Within this index, the prices of agricultural products rose by 10.92% annually, mainly due to a 15.90% increase in the price of fruits and vegetables.
In terms of energy and government-authorized tariffs, inflation in this area was 4.62 percent.
For its part, the Underlying Index, which eliminates goods and services with more volatile prices from its calculations, slowed down again in October, going from 3.90 to 3.90% annually.
Within this, the merchandise sector showed an annual increase of 2.81% in its prices, while services rose by 4.98 percent.
Source: eleconomista
