Mexico inflation likely dipped in first half of November, core rate lowest since 2020
MEXICO CITY, Nov 19 (Reuters) -Mexico's headline inflation likely fell in the first half of November after edging up in the previous pair of two-week periods, a Reuters poll showed on Tuesday, boosting bets that the central bank will pursue more interest rate cuts.
The median projection of 10 participants estimated an annual inflation rate of 4.69% for the country's consumer price index (INPC) during the first half of November, which would put the rate back on a path toward the central bank's official 3% target. MXCPHI=ECI
Core inflation, which strips out some volatile food and energy prices, likely slid to 3.72%, the poll showed, which would mark its lowest level in four years. MXCPIC=ECI
The head of the Bank of Mexico told Reuters in an interview on Monday that the monetary policy authority will likely be able to continue cutting its key lending rate as inflation remains on its downward trajectory.
Banxico, as the central bank is known, lowered its key rate by 25 basis points to 10.25% last week in a unanimous decision by its five-member governing board. The cut marked the Banxico's third consecutive rate reduction.
The bank's next rate decision, its last one this year, is scheduled for Dec. 19.
During just the first half of November, consumer prices likely crept up 0.49%, according to the poll, while the core index likely rose by 0.17%. MXCPIF=ECI, MXCPIH=ECI
Mexico's national statistics institute INEGI is set to release official consumer price index data for the first half of November on Friday.
Reporting by Noe Torres; Additional reporting by Gabriel Burin; Editing by Alistair Bell
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