© Reuters. FILE PHOTO: People sell corn grains at a public market in Ozumba de Alzate, State of Mexico, Mexico, May 24, 2022. REUTERS/Edgard Garrido/File Photo
(Reuters) – Mexican headline inflation persisted in its upward trend for the fifth half-month in a row, above the expected forecasts, according to official data released on Wednesday.
Annual headline inflation in Latin America’s second-largest economy hit 4.90% the first 15 days of January, statistics agency INEGI said,up from the 4.66% in December and above the forecasts of 4.78% in a Reuters poll of economists.
Accelerating inflation in November and December led to more careful forecasts at the Bank of Mexico, which has till now held back from reducing Mexico’s key interest rate from its current all-time high.
The closely monitored core index, seen as a better gauge of price trends because it strips out volatile energy and food prices, continued to ease and rose 0.25% during the month, while annual core inflation came in at 4.78% in early January, its lowest since August 2021.
A recent Citibanamex survey of economists revealed that a significant portion of the market predicts the Bank of Mexico will commence lowering the key interest rate at its March meeting.
